Reporter Xiao Feng.
On December 15, 2023, Shenzhen China Construction Group Co., Ltd. *** abbreviation: China Construction Construction; **002822) Received the Notice of Case Filing issued by the China Securities Regulatory Commission (No.: Zheng Jian Case No. 007202336). Due to suspected violations of laws and regulations in information disclosure, the China Securities Regulatory Commission decided to file a case against him in accordance with relevant laws and regulations. The 315 team of Hengcai Bao Wei Heng Finance (TZ315-WH) said that the injured investors who preliminarily judged the period from April 26, 2019 to April 26, 2023 (inclusive), and sold or still held the ** after April 27, 2023, can file a claim (the final claim conditions are subject to the court's determination).
The information disclosure was inaccurate, and the warning letter and the letter of concern were received successively.
On February 7, 2024, China Construction Construction issued an announcement to implement and reply to the questions received from the first section of the management of listed companies on the Shenzhen ** Stock Exchange on January 31, 2024 (Letter of Concern No. 25 of 2024) (hereinafter referred to as the "Letter of Concern"). The letter of concern mentions: On June 29, 2023, your company disclosed the "Announcement on the Reply to the Inquiry Letter of the 2022 Annual Report", which shows that your company has failed to timely accrue the relevant expenses to the internal contractor for some internal contracting business projects, resulting in accounting errors that have not accurately divided the expense attribution period, and your company has retrospectively reshaped the financial statements from 2018 to 2021 and corrected the accounting errors after self-examination of the relevant projects, increased the management expenses of each reporting period and reduced the net profit of each reporting period. Please explain whether the accounting of the costs and expenses of the internal contracting business during the reporting period is standardized, whether it complies with the relevant provisions of the Accounting Standards for Business Enterprises, and whether there are still material accounting errors or major internal control deficiencies that should be disclosed in the reporting period and previous years. China Construction replied: "The new orders in 2023 will be independently contracted and operated, and there is no other situation; The accounting standards for costs and expenses in the reporting period and previous years are in line with the relevant provisions of the Accounting Standards for Business Enterprises; There are no material accounting errors or material deficiencies in internal control that should be disclosed. Previously, on October 21, 2023, China Construction Construction retrospectively adjusted the financial statements from 2018 to 2021 due to the disclosure of the "Announcement on the Correction of Accounting Errors in the Previous Period". The correction reflects the inaccurate disclosure of relevant financial data information in the company's annual reports from 2018 to 2021, and received the "Decision of Shenzhen Securities Regulatory Bureau on Issuing Warning Letters to Shenzhen China Construction Group Co., Ltd." (No. 2023 No. 181) issued by the Shenzhen Securities Regulatory Commission and the Shenzhen Securities Regulatory Bureau.
The 2023 earnings forecast is expected to be negative in net profit.
On January 31, 2024, China Construction Construction released the "2023 Annual Performance Forecast". The 2023 earnings forecast is expected to be negative in net profit. The net profit attributable to shareholders of the listed company in the reporting period was a loss of 500 million yuan to 600 million yuan, compared with a profit of 1,124 yuan in the same period last year920,000 yuan; The net profit after deducting non-recurring gains and losses in the reporting period was a loss of 435 million yuan to 535 million yuan, compared with a loss of 431 in the same period last year350,000 yuan. The reasons for the change in performance in the reporting period are as follows: 1. During the reporting period, the company adopted a more prudent business strategy and order strategy, with a decrease in new orders, a year-on-year decline in operating income, and a decrease in overall gross profit margin compared with the same period last year; 2. Some of the company's projects under construction were temporarily suspended due to incomplete procedures, and the impairment test was carried out, and the corresponding impairment provision was made based on the principle of prudence; 3. Due to the fact that some accounts receivable are less than expected, based on the principle of prudence, corresponding impairment provisions are made for possible impairment losses; 4. During the reporting period, dispose of inefficient subsidiaries and confirm the corresponding losses.
At present, the claim of China Construction Construction is being collected, and the injured shareholders can contact the 315 team of Hengcai Bao Weiheng Finance (TZ315-WH) to consult whether the claim conditions and procedures are met.