More than 130 companies' financial reports accounted for more than 40% by "non-standard" venture companies

Financial reports of 131 A-share companies were "non-standard"

◎ Reporter Zhang Xue and Guo Chenglin

The 2023 annual report disclosure of A-share companies is nearing the end, and more and more "non-standard" reports emerge. Choice data shows that as of April 29, 131 A-share companies had their financial reports audited by non-standard audit opinions, including 54 risk companies such as ST and * ST, accounting for more than 40%.

Among them, ST Ningke *ST Haiyue , ST Furun *ST Meishang , ST Jiyao *ST Zuojiang 、 *ST Tongda 、 ST Tongmai The audited institutions of 8 companies issued audit reports with unqualified opinions, 46 issued audit reports with qualified opinions, and 77 issued audit reports with unqualified opinions with emphasized items. The reporter of Shanghai Securities News noticed that many companies that have been issued "unable to express their opinions" have successively issued risk warning announcements that may be terminated from listing.

Industry insiders said that with the continuous strengthening of supervision, the responsibilities of the key minority and intermediaries of listed companies were further compacted, and more audit institutions boldly said "no" to listed companies. In addition, the independent directors of many companies performed their duties and made independent voices before and after the release of the annual report to remind investors of relevant risks.

"Non standard" financial statements circle risk points

At the time of the annual report disclosure season, investors pay more attention to the quality of financial reports while caring about the financial situation of listed companies. The opinions of audit institutions are the core reference for evaluating the quality of financial statements of listed companies.

The types of audit opinions issued by accounting firms for listed companies include unqualified opinions with emphasis, standard unqualified opinions, qualified opinions and unqualified opinions. Among the listed companies that have been issued non-standard audit opinions, the major uncertainty of going concern has become a key factor.

The reporter noticed that ShineWing *ST Jiawo (The original "Jiawo Food") The 2023 financial report issued an unqualified audit report with significant uncertainties of going concern. It is disclosed that the net profit of Jiawo Food in 2023 will be 1.367 billion yuan, the asset liability ratio as of December 31, 2023 will be 95.58%, the interest bearing liabilities to be paid within one year will be about 3.05 billion yuan, and some short-term loans and accounts payable will be overdue.

For another example, because current liabilities are higher than current assets, there are major uncertainties in the ability to continue as a going concern and other factors, ZTE Finance Guanghua has issued an unqualified audit report on ST Tianshan's 2023 financial report with significant uncertainties in continuing as a going concern and with unqualified opinions in stressed event segments.

For Asia Pacific (Group) Zhengyuan Shares The 2023 financial report issued an unqualified audit report with highlighted event sections and major uncertain sections related to continuous operation. The net profit of the listed company was negative, there were many lawsuits, and the profitability of the main business declined.

In addition, many enterprises are involved in large amount litigation, limited solvency, overdue debts, frozen deposits, and the inability of accountants to obtain relevant audit evidence. In addition, some other companies were warned/punished by the regulators during the reporting period because of former information disclosure violations, (former) directors, supervisors, and senior executives' disciplinary violations.

For listed companies, non-standard audit opinions will affect their share prices, shareholders' confidence, and cause great concern from regulators, and may even lead to delisting risks.

The reporter found that among the above listed companies with non-standard audit opinions, 54 were * ST and ST companies that had been given delisting risk warnings and other risk warnings by the Exchange.

The responsibility of "gatekeeper" is further compacted

In recent years, with the continuous increase of supervision, the key minority of listed companies and the responsibilities of audit institutions have been further compacted.

At the beginning of March this year, the Chinese Institute of Certified Public Accountants, together with the Accounting Department of the Ministry of Finance, the Supervision and Evaluation Bureau and the Accounting Department of the China Securities Regulatory Commission, held a supervision interview to conduct collective supervision interviews with eight accounting firms newly filed to undertake the audit of the financial statements of listed companies in 2023 for the first time. Relevant principals of Beijing, Zhejiang, Shandong, Henan and Shenzhen Institute of Certified Public Accountants also participated in the interview.

In order to strengthen the supervision of annual report audit, the regulatory authorities have taken a number of measures.

For example, the Exchange sent a letter of concern to several listed companies with "sudden exchange"; Another example is that many securities regulatory bureaus have issued notices reminding accounting firms to be diligent and responsible in their annual report audit practice, and to pay attention to outstanding problems and major accounting audit risks in their audit practice.

A partner of a law firm in Beijing told reporters that in the future, regulators will increase the responsibilities of listed companies and accounting firms at the same time, so non-standard audit opinions are likely to increase further. The "truer" behavior of audit institutions can avoid the risk of "accounting responsibility becoming audit responsibility", which is beneficial to the "gatekeepers" of third-party institutions Play a practical role in protecting investors.

The performance of independent directors presents a new atmosphere

Last September, the first major systemic reform of the independent director system in 22 years was officially implemented. Recently, the Several Opinions on Strengthening Supervision and Preventing Risks to Promote the High Quality Development of the Capital Market issued by the State Council stressed that "the independent directors' supervision role should be effectively played and the performance guarantee constraints should be strengthened".

The reporter noticed that more and more independent directors of listed companies actively perform their duties, check and express their objections through their own channels, and boldly say "no" to the company.

Since this year, nearly 20 independent directors of listed companies have submitted letters of supervision to listed companies, including but not limited to horizontal competition, occupation of non operating funds by related parties, violations of laws and regulations, annual report audit, and equity changes, to urge listed companies to eliminate the adverse effects of the above matters on the company.

Among them, Vetrone After field investigation, the independent director submitted a letter of supervision to the listed company, requiring the company to quickly promote the investigation and rectification of matters, and reminding the company to provide all the materials that need to be reviewed for annual report disclosure on time; ST start The independent director submitted a letter to the board of directors requesting the company to employ a third-party intermediary to conduct a special audit of the company; *ST Huichen After the listed company received the regulatory letter, the independent directors quickly held a special meeting to suggest the listed company to modify its decision-making... Independent directors are becoming an important force that cannot be underestimated in the process of listed company governance.

At present, the responsibility orientation of independent directors to participate in decision-making, supervision and balance, and professional focus has become increasingly clear with the continuous implementation of new regulations for independent directors. In the future, the terms of reference and the way of performing duties of independent directors will be more detailed. Independent directors are gradually changing their roles from all-round directors to supervisors, consultants and decision-makers.