There are still 2 months before the "submission date" of the annual report, and the two listed companies have successively announced the change of annual examination institutions, and it is the same "zero experience" firm that comes to "put out the fire".
*: Photo.comThree months after the re-appointment, Strait Innovation changed its office "on the spot".
On February 29, Strait Innovation (300300SZ) received a letter of concern from the Shenzhen Stock Exchange, asking about the change of accounting firm, and the company previously announced that it intends to change the audit institution in 2023 from Daxin Certified Public Accountants (Special General Partnership) (hereinafter referred to as Daxin) to Beijing Yatai International Accounting Firm (Special General Partnership) (hereinafter referred to as Yatai International).
It is reported that Daxin has provided annual report audit services for the company for 7 consecutive years, and the audit opinions are all standard unqualified opinions. In November 2023, the company's board of directors agreed to re-appoint Daxin as the auditor for 2023, which was approved by the general meeting of shareholders on December 5, but the reappointment was suddenly announced three months later. Strait Innovation said that due to the allocation of human resources and work arrangements, Daxin is expected to be unable to provide audit services for the company's 2023 annual financial statements, and has submitted an application to the company to resign from the audit of the 2023 annual report.
In this regard, the exchange requires Straits Innovation to explain whether the reasons for resignation are true and reasonable, and whether there are major differences between the company and Daxin on the relevant accounting treatment matters in 2023 in combination with the specific work plans and arrangements of Daxin's project partners, signing certified public accountants, quality control reviewers, audit teams and other personnel, as well as the comparison with the work arrangements of previous years.
As for the successor audit institution, the announcement shows that Yatai International was established in 2016, and in 2022, it will obtain the dual filing of the Ministry of Finance, the China Securities Regulatory Commission, and related business qualifications, and the total business income in 2023 will be 5513700,000 yuan, of which 969 yuan was from audit business030,000 yuan, there are 0 audit customers of listed companies, 1 audit customer of listed companies, and the audit fee is 60,000 yuan. As of December 31, 2023, Yatai International has 16 partners and 69 certified public accountants, including 12 certified public accountants who have signed the audit report of ** service business.
Compared with Yatai International, which has "zero experience" in the audit of listed companies, Daxin has 196 annual report audit clients (including H shares) of listed companies in 2022, with a total fee of 24.3 billion yuan, the annual business income of 157.8 billion yuan, of which 136.5 billion yuan. As of December 31, 2022, Daxin has a total of 4,027 employees, including 166 partners, 948 certified public accountants, and more than 500 have signed the audit report of ** service business.
The exchange also requires Straits Innovation to supplement the staffing of the new auditor Yatai International, the relevant information of past audit projects, and the experience of auditing listed companies in the past, and verify whether Yatai International has the audit experience and ability to match the company's industry business, and whether the company has made agreements or other arrangements with Yatai International and its audit project team members on the audit opinions for 2023.
It is worth noting that in November 2023, Strait Innovation was filed by the China Securities Regulatory Commission on suspicion of illegal information disclosure, and after the company's self-inspection, it may involve the inflated operating income of the shareholding company (the former holding subsidiary) in 2018 and 2019.
According to the preliminary calculation of the company's financial department, the company's net profit attributable to the parent company in 2023 is expected to lose 200 million yuan to 29.6 billion yuan, compared with the loss in 2022 (1.7.6 billion yuan) further expanded. In addition to factors such as a sharp decline in operating income, asset impairment losses and credit impairment losses, some of the company's investment projects have fair value change losses, which are expected to reduce the net profit by about 85 million yuan in 2023.
In January 2024, Yin Yixuan, acting general manager, deputy general manager and secretary of the board of directors of the company, resigned due to personal reasons and no longer held any position in the company after his resignation.
Zitian Technology's annual review "business follows people", and cloud services and advance payments have attracted attention again
Just a few days before the announcement of the exchange of Strait Innovation, Zitian Technology (300280SZ) was also concerned by the exchange for rehiring Yatai International.
The audit institution of Zitian Technology in 2022 is Asia-Pacific (Group) Accounting Firm (Special General Partnership) (hereinafter referred to as Asia-Pacific Institute), and the audit opinion of the annual report is a standard unqualified opinion. Also due to the allocation of human resources and work arrangements, APAC is expected to be unable to provide audit services for the company's 2023 annual financial report.
The signing certified public accountants appointed by Yatai International for the 2023 annual review project of Zitian Technology are Tian Mengjun (project partner) and Ren Haichun, who are the signing accountants of the company's 2022 annual audit report, and have been practicing in Yatai International since December and November 2023 respectively. In addition, according to the "List of 23 Accounting Firms Online Change, Filing and Renewal of Practice Certificates and Cancellation of Practice Licenses of 4 Accounting Firms" announced by the Beijing Municipal Bureau of Finance in February 2024, the chief partner of Yatai International has been changed from Hu Zhiyong to Tian Mengjun.
In the letter of concern issued to Zitian Technology on February 26, in addition to paying attention to the reasons for the resignation of the Asia-Pacific Institute and the audit capabilities of Yatai International, the Shenzhen Stock Exchange also asked Zitian Technology to supplement the specific communication of the previous and subsequent auditors, as well as whether it has communicated in detail on whether the company's cloud service business and large prepayments have commercial substance, and whether the provision for goodwill impairment has been carried out.
According to the company's past announcements, Zitian Technology's cloud service business is to provide customers with server procurement and supporting installation, and provide operational services such as inspection and interface development for a certain period of time, and will start to achieve revenue in the first quarter of 2023 and 34 billion yuan, gross profit margin of 3276%, as of November, 9202370,000 yuan. Based on the above data, the operating cost of the business in the first three quarters was about 2$2.9 billion.
The cost of the company's cloud service business is mainly to purchase servers from vendors, specifically from the first merchant A 2$2.1 billion. Zitian Technology will establish a procurement channel in the second half of 2022, book models in the form of advances, and prepay 8. to **Shang A at the end of 20221.2 billion yuan, driving the company's prepayment balance at the end of the period to reach 89.7 billion yuan, compared to only 35280,000 yuan. With the realization of procurement, the company's prepaid balance fell to 58 billion yuan.
It is worth noting that Zitian Technology listed the cloud service business as one of its main businesses in the 2023 semi-annual report, and said that "cloud services are centered on computing power" and "in 2023, the company has launched cloud service business, integrating servers, computing power, networks, software, etc., to provide cloud computing services for the company's customers". However, the company later stated in its reply to the exchange's inquiry letter that as of the third quarter of 2023, the existing purchased servers are cloud storage servers and do not involve computing power servers.
In terms of goodwill, the original book value of goodwill of Zitian Technology as of June 2023 was 83.2 billion yuan, mainly due to the acquisition of 70% of the shares of Beijing Yijia Jingshi Media in 2018$4.6 billion in goodwill.
The performance commitment period of this acquisition is from 2017 to 2020, and the cumulative net profit of Yijia Jingshi is 65.7 billion yuan, and the performance commitment completion rate was 11684%。Among them, in 2020, 100 million crystal vision will achieve a net profit of 8343480,000 yuan, a year-on-year decrease of 7362%, only 51 of the current performance commitments50%, but Zitian Technology did not make any provision for goodwill impairment.
In 2021, the operating income of Yijia Jingshi will further drop to 6608420,000 yuan, a year-on-year decrease of 6640%, net profit also fell 5243% to 3616370,000 yuan, Zitian Technology provided for its goodwill impairment of 2830 in the current period640,000 yuan. In 2022, Yijia Jingshi will achieve an operating income of 39.7 billion yuan and net profit of 8192440,000 yuan, a year-on-year rebound. However, after the impairment test, Zitian Technology continued to provide for the impairment of goodwill of 3029430,000 yuan, with a cumulative impairment of 5860070,000 yuan.
Prior to the announcement of the exchange of Strait Innovation and Zitian Technology, *ST mid-term (000996SZ), ST Start (603557SH) and other companies have successively announced the reappointment of Yatai International as the auditor for 2023 in December 2023.