Jin Tongling's actual loss increased significantly compared with the expected and was questioned

Zhongxin Jingwei, April 22 Due to the significant increase in the actual performance of 2023 compared with the expected amount of loss, the Shenzhen Stock Exchange issued an annual report inquiry letter to Jin Tongling on the 22nd.

First of all, Jin Tongling will achieve operating income of 1450.0816 million yuan in 2023, a year-on-year decrease of 6.60%, and the net profit attributable to shareholders of listed companies (hereinafter referred to as "net profit attributable to the parent company") will be -505.5107 million yuan, a year-on-year decrease of 39.81%, and the net profit attributable to shareholders of listed companies after deducting non-recurring profits and losses (hereinafter referred to as "deducting non-net profits") will be -561.0823 million yuan, a year-on-year decrease of 39.99% Compared with the expected net profit attributable to the parent company and the non-net profit deducted in the performance forecast disclosed by the company on January 27, the loss has intensified and the change range is more than 20%. In terms of products, except for the sales revenue of boilers increased by 38.8% year-on-year, the revenue of other products declined, of which the revenue of steam turbines and generator sets decreased by 60.73% and 42.5% respectively. From the perspective of product gross profit margin, the gross profit margin of steam turbines was -23% and has been negative for two consecutive years, and the gross profit margin of generator sets was -132.47%, a year-on-year decrease of 165.78 percentage points.

The Shenzhen Stock Exchange requires, (1) explain the reasons why the actual performance in 2023 has increased significantly compared with the estimated amount of loss, and the reasons why the performance forecast cannot be accurately estimated at the time of the performance forecast, and whether there are any major differences between the communication between the company and the accountant on the relevant accounting treatment from the date of the performance forecast to the date of disclosure of the annual report. (2) Explain the reasons and reasonableness of the changes in the operating income of each product in combination with the industry segmentation, production and operation situation, customer type and main customer changes of each product. (3) In the reply to the inquiry letter of the 2022 annual report, the company stated that the gross profit margin of the company's steam turbine was negative due to the decline in prices and the high fixed cost of the unit, and combined with the order situation, unit price, cost composition and other aspects of the steam turbine, the gross profit margin of the product was continuously negative, and the reasonableness and necessity of the company to sign and execute the loss-making contract. (4) Combined with the type of customer, the signing and execution of orders in the past two years, the change of average selling price, the cost composition and its changes, etc., explain the reasons for the negative gross profit margin of the generator set and the sharp decline, and whether the customer is a related party.

Secondly, the order amount of the company's Xinjiang Jingheyuan New Materials Co., Ltd. waste heat power generation project (hereinafter referred to as the "waste heat power generation project") is 730.0658 million yuan, and the project implementation progress as of the end of the period is 70%, and the cumulative revenue has been recognized to be 425.2696 million yuan, and the payment is 0 yuan, due to the extension of the construction period, the project progress has not reached expectations. The project started in August 2017, and the project progress from 2019 to 2022 has been around 60% for a long time, and the company said in its 2022 annual report inquiry reply that the project is expected to be completed by the end of 2023. In addition, the implementation progress of Xinjiang Jingheyuan New Materials Co., Ltd. with an annual output of 280,000 tons of high-purity silicon project (hereinafter referred to as the "high-purity silicon project"), which is the same as that of 2021, is 60.18% at the end of the period, with a cumulative return of 236.4177 million yuan, and no revenue will be recognized in 2023. In 2022, the company made an impairment provision of 45.3495 million yuan for contract assets for high-purity silicon projects, due to the decrease in expected income due to the adjustment of settlement methods and interest standards, and no impairment provision has been made for waste heat power generation projects.

The Shenzhen Stock Exchange requires: (1) list the project progress of the waste heat power generation project in each year since the commencement of construction, including the project investment, construction situation, actual construction time, equipment procurement, arrival and acceptance, revenue and cost recognition basis and amount, etc., explain the reasons and reasonableness of the extremely slow progress of the project from 2019 to 2022, the reason and reasonableness of the payment so far, whether there is any dispute or dispute with the owner, whether there is any major uncertainty in the project progress or planning, and provide corresponding supporting materials to our department. (2) Explain whether there is no progress in the high-purity silicon project in 2022 and 2023, if so, explain in detail the reasons and reasonableness, whether the project is in a state of suspension, and explain whether the company's disclosure of "the project progress meets expectations" is in line with the actual situation in combination with the project's commencement time, construction plan, and original expected completion time. (3) Compare the settlement terms, methods, payment terms, term, interest rate level, etc. of the above two projects, explain the reasons and reasonableness of the significant difference in the amount of payment between the two projects under the condition of similar construction progress, and combine the assets, liabilities, cash flow and other capital conditions of the owner, as well as the production and production of the business related to the above two projects. The sales situation and other information explain whether there is uncertainty in the payment of the project, whether the change in the settlement method and interest standard of the high-purity silicon project is caused by the owner's shortage of funds, and the reasons and reasonableness of the waste heat power generation project that has not been provided for impairment when the high-purity silicon project has been impaired.

Third, at the end of the reporting period, the book value of the company's contract assets was 956.0395 million yuan, and the provision for bad debts was 46.5809 million yuan in the current period, with a cumulative provision of 169.9773 million yuan.

The Shenzhen Stock Exchange requires: (1) List the main information of the unsettled assets that have been performed by item, including but not limited to the project name, the time of contract signing, the time of commencement of the project, the original expected completion time of the project, the total amount of the project, the amount completed at the beginning of the period, the amount settled at the beginning of the period, the amount completed at the beginning of the period, the amount settled at the end of the period, the amount settled at the end of the period, the amount unsettled at the end of the period, the percentage of completion at the end of the period, the payment collection as of the end of the period, the balance of accounts receivable, and the specific reasons why the customer has not yet settled. (2) For projects whose progress is less than expected, explain the project location, contractor, and detailed reasons for slow progress one by one, list the project construction progress in the past three years, the actual construction duration of each year, the estimated completion time and basis, and explain in detail the feasibility of the subsequent implementation of the project and the payment in combination with the customer's financial strength, the conditions to be met for the completion and settlement of the project, and the current obstacles, and explain the adequacy of the provision for impairment of contract assets in combination with the expected credit loss model and the provision for bad debts of companies in the same industry. Whether it is reasonable for projects that are progressing slowly without making provision for impairment.

In addition, the Shenzhen Stock Exchange also required Jin Tongling to explain the reasons for the significant increase in the number of objects of bad debts accrued on a single basis this year, whether the provision of bad debts was timely and sufficient, and whether there was a situation of deliberately reducing the proportion of bad debts accrued to increase profits.

According to public information, Jin Tongling has been focusing on the field of centrifugal fans, providing users with end-to-end complete wind system solutions for the whole life cycle, such as wind system demand analysis, wind system R&D and design, centrifugal fan product manufacturing, and wind system energy-saving transformation.

In the secondary market, Jin Tongling closed down 3.47% at 1.67 yuan per share on the 22nd. (Sino-Singapore Jingwei APP)