A number of financial indicators did not say KingSun report was the Shenzhen Stock Exchange inquiry

In July 5th, the Shenzhen Stock Exchange issued to KingSun annual inquiry letter, the financial statements of accounts receivable year-on-year increase, larger issues such as changes in net profit index rose ring for listed companies, one by one.

KingSun 2015 report shows that during the reporting period, the company achieved operating income of 850 million yuan, net profit of 20 million 740 thousand yuan, an increase of 68.82%. Released on the same day in 2016 a quarterly, the company expects net profit in the first half of this year is expected to reach 35 million yuan to $42 million, an increase of 107.03% to $148.44%.

Although KingSun has made good results, but the regulators in the process to review the company's 2015 annual report is still a lot of attention to the problem.

The Shenzhen Stock Exchange first concern is the current assets. The inquiry letter pointed out that as of December 31, 2014 and December 31, 2015, the book balance of inventories was 260 million yuan and 304 million yuan, provision for inventories amounted to 10 million 95 thousand and 300 yuan and 33 million 954 thousand and 600 yuan, the provision ratio were 3.89% and 11.16%. Please, the combination factors of industry, technology development, market situation, stock structure and price trend, explain why 2015 inventory impairment provision ratio is high and the company in 2014 inventory provision is sufficient, and please company CPAs issued a clear opinion.

The report also shows that as of December 31, 2015, the company accounts receivable net value of 679 million yuan, an increase of 16.39%, which is more than 1 years of accounts receivable, net 275 million yuan, accounting for 40.48% of the total accounts receivable. Thus, the regulators second main issues around the "aged over 1 years of accounts receivable". The Shenzhen stock exchange requires listed companies with the industry, business model, credit policy, explain the following matters: first, in 2015 operating income fell 6.2%, accounts receivable should be the main reason for an increase of 16.39%; second, aged more than 1 years of payment, accounts receivable should be in the top five customers of the basic and after the period; third, aged more than 1 years of accounts receivable accounts receivable should be the main reason for a higher proportion of the total, and the company of the accounts receivable measures to be taken; fourth, please explain to the authenticity of the accounting for nearly two years for the receivables audit procedures and audit evidence the acquisition is full.

Another concern of regulators is the volatility of earnings statement. Shenzhen pointed out that in 2015 the first to the fourth quarter, net profit attributable to shareholders of listed companies were 31 million 986 thousand and 800 yuan, -1508.14 million yuan, 1 million 328 thousand and 400 yuan and 2 million 510 thousand and 900 yuan, please explain the large difference in the performance of the company every quarter in 2015. In addition, the fourth quarter of 2014 and the fourth quarter of 2015, revenues were 85 million yuan and 214 million yuan, net profit attributable to shareholders of listed companies were -7898.10 million yuan and 2 million 510 thousand and 900 yuan, please state in 2015 fourth quarter revenue and net profit change greatly.

In addition, the reason, the Shenzhen Stock Exchange to the company for more than 1 years of age prepayments formed after receipt or verification of the situation, whether there are significant risk of bad debts and other receivables accounts of the composition and nature of a number of financial indicators related questions were asked, and asked the company in July 12th before the that management of the Department of materials submitted to the small board company and disclosed, and sent to the Guangdong Securities Regulatory Bureau listed company supervision department.

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