vegasxslots| Last year, revenue increased by 186.32%, and net profit fell by more than 5000%. Jianyi Group was questioned about accounts receivable as the focus in its annual report

May 10, Shenzhen Stock Exchange to Jianyi Group (002789) (SZ002789, share price 9.VegasxslotsAccording to the 2023 annual report inquiry letter issued by .24 yuan, with a market capitalization of 1.475 billion yuan, the company's revenue last year increased by 186.32% compared with the same period last year, while its net profit decreased by 5142.03%. The inquiry letter pointed out that Jianyi Group had mentioned "the possibility of recovery of relevant arrears" in its reply to the 2022 annual report, and it also announced in the third quarter of 2023 that the provision for bad debts collected and transferred in the first three quarters totaled 40.3713 million yuan. As a result, the 2023 annual report showed that the provision for bad debts of accounts receivable for that year totaled 8.9854 million yuan, which was quite different from the data announced before. The change of this data, as well as the processing of accounts receivable by Jianyi Group, have become the focus of this inquiry.

In addition, a reporter from the Daily Economic News noticed that by the end of the reporting period, Jianyi Group still had over 1.2 billion yuan in short-term loans, over 500 million yuan in long-term loans, and nearly 600 million yuan in non-current liabilities. at the same time, the company's monetary capital is 677 million yuan and the asset-liability ratio has increased year by year in the past three years. Therefore, the inquiry letter also requires Jianyi Group to analyze whether there is liquidity risk and so on.

Accounts receivable become the focus of attention.

Jianyi Group realized operating income of 6.2 billion yuan in 2023, an increase of 186.32% over the same period last year, but its net profit was a loss of 563 million yuan, down 5142.03% from the same period last year. After deducting non-parent net profit, it lost 602 million yuan, down 270.15% from the same period last year. Jianyi Group mentioned in the previous announcement that due to the impairment provision for historical customers' receivables during the reporting period, the net profit attributed to the parent company decreased significantly compared with the same period last year.

However, before the release of the annual report, Jianyi Group seems to be much more optimistic about the recovery of accounts receivable.

First of all, in the announcement on the provision for impairment of assets in the first three quarters of 2023 disclosed by Jianyi Group on October 30, 2023, the company's asset impairment losses and credit impairment losses returned in the first three quarters totaled 46.7134 million yuan, regardless of the impact of income tax, the company's net profit and net assets will increase by 46.7134 million yuan. Among them, accounts receivable were recovered and transferred back to 40.3713 million yuan.

In addition, Jianyi Group said in the reply to the 2022 Annual report that the company's main customers are well-known domestic real estate enterprises, administrative and public institutions, the company has actively urged the collection of arrears, the relevant arrears have the possibility of recovery.

However, Jianyi Group made further provision for large asset impairment losses and credit impairment provisions at the end of 2023. The inquiry letter points out that according to the 2023 annual report, the balance of accounts receivable of Jianyi Group is 5.377 billion yuan, and the provision for bad debts is 1.724 billion yuan, of which 975 million yuan is set aside for bad debts individually and 750 million yuan for bad debts in a combination.

Therefore, the inquiry letter requires Jianyi Group to combine the specific circumstances of the relevant historical customers' receivables (including but not limited to the original value, account age, overdue situation and impairment provision, etc.), customer credit risk, etc., to explain the company's assessment process and basis for the recyclability of the relevant money. whether the provision for bad debts is sufficient and reasonable.

Liquidity risk attracts attention

For Jianyi Group, the current problems are, on the one hand, the high level of accounts receivable and the difficult to predict the payback time for the time being.VegasxslotsOn the other hand, highly stressed companies are in debt.

The inquiry letter pointed out that according to the 2023 annual report, Jianyi Group had 1.273 billion yuan in short-term loans, 592 million yuan in non-current liabilities due within one year, and 505 million yuan in long-term loans, all of which increased significantly compared with the same period last year. At the same time, the company's monetary capital is 677 million yuan and the asset-liability ratio has increased year by year in the past three years, and the asset-liability ratio at the end of 2023 is as high as 97.45%.

Therefore, the inquiry letter also requires Jianyi Group to explain whether the company has liquidity risk in the light of the company's current capital situation, maturing and overdue debts in 2024, investment, financing and debt repayment arrangements, as well as financing guarantors, and whether the company's controlling shareholders are willing to provide long-term and stable guarantees for the company's financing. If the company fails to obtain the guarantee provided by the controlling shareholder, whether it will have a significant adverse impact on the company's liquidity and sustainable operating ability.

Last year, with revenue up 186.32 per cent year-on-year, Jianyi Group generated net cash flow from operating activities of-389 million yuan, down 252.65 per cent from the same period in 2022.