The correction of the consolidated financial statements and the retrospective adjustment led to the company's net profit attributable to the owners of the parent company in 2018, 2019, 2020 and 2022 respectively060,000 yuan, -9104600,000 yuan, 1037000000000000000000000000000000000650,000 yuan. The above adjustments will not result in a change in the nature of profit and loss in the Company's disclosed financial statements for the relevant year.
In June 2023, China Heavy Industry received the 2022 annual report information disclosure supervision work letter issued by the Shanghai ** Exchange. According to the 2022 annual report of China Heavy Industry, the company made an asset impairment loss of 19 in that year2.3 billion yuan, including inventory decline loss and contract performance cost impairment loss of 185.1 billion yuan, fixed assets impairment loss 05.3 billion yuan, contract asset impairment loss 0$1.8 billion.
As for the reasons for the impairment, the annual report explained that the shipbuilding enterprises affiliated to the group had a significant increase in marine equipment and marine materialsLabor costs, stability maintenance costs have increased significantly, the pressure on comprehensive costs is greater, and the product sales contracts in the production process have suffered losses, resulting in some inventory book costs higher than the recoverable amount. Subsequently, the Shanghai Stock Exchange requested China Heavy Industry Co., Ltd. to disclose the reasons and reasonableness of the asset impairment loss significantly higher than that in 2021 against the background of the decline of new ships and steel products in 2022, and set out the calculation process. At the same time, it also explains whether the provision for impairment losses on the relevant assets in previous years is sufficient and provides a basis.
Subsequently, China Heavy Industry Co., Ltd. organized annual audit accountants and relevant departments to carefully verify and implement the issues involved in the regulatory work letter as required, and found that Wuchang Shipbuilding, a wholly-owned subsidiary of the company, did not accurately make provisions for inventory price declines. In this regard, the company adopted the retrospective restatement method to make up the provision for inventory decline from 2018 to 2019, and reversed the provision for inventory decline in 2020, resulting in the asset impairment loss in 2022 need to be adjusted accordingly, and the balance sheet account at the beginning of 2022 will be adjusted accordingly. In summary, the company made retrospective adjustments to the financial statements from 2018 to 2022.
China Heavy Industry said that the correction of the accounting error in the early stage was due to the failure of the relevant financial personnel of Wuchang Shipbuilding to make accurate accounting estimates and accounting judgments for the new deep-diving work mother ship it built, and the failure to accurately make provisions for inventory decline for the project, and the company has investigated the corresponding responsibilities of the relevant personnel of Wuchang Shipbuilding who have leadership responsibility and direct responsibility in accordance with internal management regulations. The company will take this as a warning and continue to strengthen the learning Xi and training of financial personnel to avoid the recurrence of such situations.
On July 12, 2023, China Heavy Industry received the "Notice of Case Filing" issued by the China Securities Regulatory Commission, and the China Securities Regulatory Commission decided to file a case against the company due to the company's suspected illegal information disclosure, in accordance with the "** Law of the People's Republic of China", "Administrative Punishment Law of the People's Republic of China" and other laws and regulations. In the regulatory work letter issued by the exchange in June, in addition to the asset impairment loss mentioned this time, it also involved a number of issues such as credit impairment loss, period expenses, and the increase in operating receivables. (Reporter Pang Xinyi reports from Beijing).
Editor-in-charge: Gao Wei.