onlinecasinorealmoneysignupbonus| Hainan Ruize received an inquiry letter involving six major issues

May 13, Shenzhen Stock Exchange to Hainan Ruize (002596) (SZ002596, share price 1Onlinecasinorealmoneysignupbonus81 yuan with a market capitalization of 20 yuanOnlinecasinorealmoneysignupbonusAccording to the annual report inquiry letter issued by .77 billion yuan, the business income of the enterprise reached 1.713 billion yuan in 2023, down 11.37% from the same period last year, and the net profit loss was 507 million yuan, down 2.76% from the same period last year. Deducting the non-net profit loss of 503 million yuan, an increase of 27.53% over the same period last year, the net profit and non-net profit deducted by the company have been negative for three consecutive years.

In this letter, the exchange asked a total of six major questions, including sustainability, solvency, goodwill, accounts receivable, PPP projects and a high proportion of pledges. According to the 2023 annual report, the book value of accounts receivable at the end of the period in Ruize, Hainan reached 1.837 billion yuan, the provision for bad debts of accounts receivable was 111 million yuan and the provision for impairment of goodwill was 230 million yuan.

A reporter from the Daily Business News noted that, in fact, Hainan Ruize's financial statements for 2022 have been issued with significant uncertainties in continuing operations.OnlinecasinorealmoneysignupbonusAn audit report with an unqualified opinion. In April 2024, Hainan Ruize issued a notice saying that the impact of the above matters has been eliminated, and the company's 2023 financial statements are audit reports issued with standard and unqualified opinions.

Last year, the amount of withdrawal was 399 million.

Hainan Ruize is mainly engaged in the production and sale of commercial concrete, municipal sanitation business and itsOnlinecasinorealmoneysignupbonusHis business (including landscaping business, leasing business). In the past three years, the income scale of Hainan Ruize has continued to shrink, while it is in the quagmire of losses.

According to disclosure, from 2021 to 2023, Hainan Ruize realized revenue of 2.778 billion yuan, 1.933 billion yuan and 1.713 billion yuan respectively, and lost 1.141 billion yuan, 494 million yuan and 507 million yuan respectively. Among them, in 2023, Hainan Ruize commercial concrete sales of 1.265 billion yuan, accounting for 73.85% of revenue.

According to Hainan Ruize, the investment and construction of municipal roads, infrastructure and industries in the region continued to improve in 2023, the demand of the concrete market increased, and the performance increased compared with the same period last year; on the other hand, the municipal sanitation business suffered a loss due to the reduction of new bid winning projects, less than expected returns, increased impairment of accounts receivable and other factors, so the company made provision for impairment of goodwill. Landscaping business faces increased market competition, increased pressure on the industry and tight funds, etc., resulting in a sharp decline in revenue, while taking into account the impairment of receivables, the performance is also at a loss.

A reporter from the Daily Economic News noted that in 2023, Hainan Ruize set aside a total of 399 million yuan for impairment of assets, directly reducing the company's net profit of 383 million yuan in 2023, which had a great impact on the company's performance. Among them, the provision for impairment of accounts receivable is 111 million yuan, inventory provision is 19.7821 million yuan, goodwill provision is 230 million yuan, and other receivables are 17.6855 million yuan.

For accounts receivable and other receivables, Hainan Ruize explained that the increase in provision is mainly due to the increase in balance and the extension of the age of some balances. The impairment loss of goodwill comes from Guangdong Lvrun Asset Group (including Guangdong Lvrun Environmental Technology Co., Ltd., Jiangxi Lvrun Investment and Development Co., Ltd., and Jiangmen Lushun Environmental Management Co., Ltd.) acquired by Hainan Ruize. Due to the lower-than-expected operating performance of this asset group, Hainan Ruize calculated the impairment loss of goodwill based on the impairment test.

The ability of sustainable operation is still concerned.

In the inquiry letter for the 2023 annual report, the exchange asked Hainan Ruize to give a further explanation on the changes in the above-mentioned financial indicators.

For example, in terms of goodwill, in 2022, Hainan Ruize recorded a goodwill impairment loss of 95.0997 million yuan against Guangdong Lvrun Asset Group, so the inquiry letter asked Hainan Ruize to explain the reason for the difference and its reasonableness. At the same time, verify whether the two impairment meet the provisions of enterprise accounting standards.

A reporter from the Daily Economic News noted that with regard to accounts receivable, the inquiry letter pointed out that at the end of the reporting period, the book value of accounts receivable in Ruize, Hainan, was 1.837 billion yuan, accounting for 45.56 percent of the total assets, and the turnover days of accounts receivable was 373.72 days, an increase of 61.73 days over the same period last year. Hainan Ruize was asked to explain whether the customer's credit policy and settlement terms had changed during the reporting period, and to list the top five accounts receivable collected by the defaulting party with an age of more than 3 years.

It is worth noting that in the 2022 report, Hainan Ruize's interest-bearing debt at the end of the period totaled 1.49 billion yuan, and guaranteed loans for subordinate companies such as PPP projects and seedling projects. As of December 31, 2022, the principal of the PPP project is 27.7 million yuan, and the interest of the seedling project is 12.5448 million yuan overdue (the overdue interest of the seedling project has been paid on March 16, 2023). As a result, Hainan Ruize 2022 has issued an audit report with an unqualified opinion in a paragraph of significant uncertainty about continuing operations. In April 2024, Hainan Ruize issued an announcement that the impact of related matters had been eliminated.

However, the inquiry letter of the annual report is still concerned about the sustainable operation ability of Hainan Ruize, which points out that the asset-liability ratio of the company in the past three years is 63.21%, 67.34% and 75.44% respectively, showing an increasing trend year by year. Hainan Ruize is required to explain whether there is significant uncertainty and liquidity risk in the light of the industry environment, the development of the company's main business, cash flow, debt and so on.