The report was the Shenzhen Stock Exchange asked KingSun such reply

The evening of July 11th, KingSun issued "on the Shenzhen stock exchange in 2015 annual report inquiry letter of reply notice" (hereinafter referred to as the "reply letter").

The primary problem of Shenzhen is concerned to KingSun investment impairment and inventory impairment provision ratio changes. From 2014 to 2015, KingSun long-term equity investment impairment amount experienced changes in inventories ratio meter rate rose from 3.89% to 11.16%.

In addition to bad debt provision ratio increased, KingSun despite the revenue decline, accounts receivable are on the rise, and the age of more than 1 years of accounts receivable accounts receivable accounts for 40.48% of the total.

KingSun secretaries Hu Shaoan said in an interview, the company's domestic business to engineering project and EMC, the payment period is longer, generally five to seven years, as reflected in the financial statements of the accounts receivable ratio on the rise, "the company is also considering restructuring, non first-tier cities do not EMC. "

Depreciation of investment

In fact, KingSun 2014 long-term equity investment involves 5 companies, losses amounted to 10 million 445 thousand and 400 yuan, but the current financial statements do not impairment. In response to the Shenzhen Stock Exchange on the 2014 annual report of the inquiry letter, said "frequently on the joint venture enterprises are in the normal operation period, and in the technology industry and products in the local advantages to a certain degree, there is no significant risk of impairment".

In 2015, KingSun meter on the long-term equity investment of 17 million 542 thousand and 200 yuan impairment, the full balance involves investment in the two companies at the beginning of 2015; the remaining three companies, a shares are KingSun transfer, a profit, another is still a loss.

In addition to the long-term equity investment, KingSun 2015 provision for inventories amount also increased to 33 million 954 thousand and 600 yuan, provision ratio of 11.16%. This figure was 10 million 95 thousand and 300 yuan in 2014 and $3.89%.

KingSun said, there are two reasons for the 2015 provision for inventories amount is higher, it is 2015 year after market research analysis, lamp, wall lamp, lamp, lamp and other products in existing products, compared with 2014 prices reached 40%; the second is the replacement products, some of the original raw materials do not meet the needs of the new products and raw materials, the market price is lower than the carrying cost.

For the reason of bad debt provision ratio increase, KingSun repeatedly referred to excessive competition in the industry: "the year 2015, the LED lighting industry downturn, the industry access threshold is low, a large number of enterprises", "the current LED lighting in the replacement period to period of development and popularization of the industry, the lack of innovation, product homogeneity serious can cause a vicious price competition war. "

Secretaries said consider business transformation

For the reason of bad debt provision ratio increase, KingSun industry repeatedly mentioned the excessive competition. In the "excessive competition" background, KingSun 2015 revenue fell 6.20% to 850 million yuan.

And revenue linked accounts receivable and prepaid accounts have been rising. Its accounts receivable grew by 16.39% to $679 million, prepaid accounts grew by $30 million 49 thousand and 700 to $20.33%.

It is worth noting that, accounts receivable, aged more than 1 years of accounts receivable, net value of 275 million yuan, accounting for 40.48% of the total accounts receivable for the previous year, EMC and the engineering project accounts receivable. "The letter", the customer involved in large amount, long period of payment, which led to the 2015 annual accounts receivable increased, "involved customers for government departments, state-owned company, this kind of customer credit, and have a good ability to pay. "

In an interview, Hu Shaoan said the company's domestic business to engineering project and EMC, the latter back for a long time, generally five to seven years, as reflected in the financial statements of the accounts receivable ratio on the rise, "the company is also considering restructuring, non first-tier cities do not EMC. "

According to the "reply letter", KingSun aged more than 1 years of accounts receivable are the top five customers of China Southern Power Grid integrated energy Co. Ltd, Guangzhou Third Construction Engineering Co. Ltd, Shandong Jin Yuan KingSun Co. Ltd., Dehong (Fujian) Light Technology Co., Ltd. brilloop group.

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