madammegaways| Tianhai Defense Annual Report Asked: Is the Monetary Fund Real

May 16thMadammegaways, Tianhai Defense (300008) (SZ300008Madammegaways, share price 3Madammegaways.87 yuan, with a market capitalization of 6.7 billion yuan) received an inquiry letter from the Shenzhen Stock Exchange on the annual report. A reporter from the Daily Business News noted that the Shenzhen Stock Exchange paid attention to a number of issues in the post-review of the Tianhai Defense 2023 annual report.

The Shenzhen Stock Exchange asked Tianhai Defense: "explain the reasons for the sharp increase in monetary funds at the end of the period compared with the same period last year, and whether there are joint or co-managed accounts or other agreements with controlling shareholders or other related parties." and on this basis to explain whether the monetary funds at the end of the period are true. "

"double high" of monetary capital and debt

At the end of 2023, the book value of monetary funds of Tianhai Defense was 8.Madammegaways90 million yuan, an increase of 48 percent over the beginning of the year. At the same time, the interest-bearing liabilities of Tianhai Defense (short-term loans, non-current liabilities due within one year, lease liabilities and long-term loans) total 645 million yuan.

The Shenzhen Stock Exchange mentioned that the asset-liability ratio of Tianhai Defense was 55% at the end of 2023, an increase of 2.55 percentage points over the same period last year. "the total book value of your company's limited assets at the end of the period is 688 million yuan, mainly monetary funds, fixed assets, intangible assets and investment real estate."

For the above-mentioned Tianhai defense monetary funds and interest-bearing liabilities "double high" situation, the Shenzhen Stock Exchange mentioned a number of problems.

"explain the reasons for the substantial increase in monetary funds at the end of the period compared with the same period last year, and whether there are joint or co-managed accounts or other agreements with controlling shareholders or other related parties, and on this basis, whether the monetary funds at the end of the period are true, whether there is a situation in which the company's controlling shareholders, actual controllers and their related parties occupy the company's funds non-operationally." At the same time, the Shenzhen Stock Exchange also requires Tianhai Defense to list one by one the details of the interest-bearing liabilities as of the date of reply, including the name of the creditor, the amount of the loan, the date of maturity, whether it is overdue, the amount overdue, whether it is involved in a lawsuit, whether there are cases in which liquidated damages for overdue loans are not accrued, whether major bank accounts are frozen, and so on.

"combined with the company's cash flow situation, daily operating working capital requirements, future capital expenditure arrangements and interest-bearing debt repayment arrangements, and the company's financing channels and capabilities, this paper analyzes your company's debt repayment ability. indicate whether there is liquidity risk and debt overdue risk." So asked by the Shenzhen Stock Exchange.

For restricted assets, the Shenzhen Stock Exchange asked about the specific circumstances in which the rights of the above-mentioned assets are limited, whether there are undisclosed illegal guarantees or occupation of funds, and whether the relevant assets are involved in litigation and whether they have been applied for preservation.

Are there any major defects in internal control?

In December, Tianhai disclosed that the Shanghai Securities Regulatory Bureau had taken administrative regulatory measures to order it to correct. Tianhai Defense failed to disclose the guarantee to subsidiaries in time, failed to accurately disclose the essence and amount of related transactions, inconsistent accounting of coke business in bulk trade according to the net method in some years, inaccurate accounting treatment of bad debts, failure to disclose government subsidies in a timely manner, and imprudent handling of financial issues related to the progress of performance.

In January this year, Tianhai Defense disclosed that it would adjust the company's financial statements for the third quarter from 2021 to 2023 according to the above-mentioned matters. The Shenzhen Stock Exchange asked Tianhai Defense: "explain the reasons for correcting the previous financial statements, the basis for determining the corrected amount and the calculation process, and whether the company's verification process of the relevant accounting subjects is comprehensive and prudent." whether the amount corrected by this accounting error is accurate and complete, and whether the corrected financial statements truthfully reflect your company's financial position and operation. Whether there is the possibility of further supplement and correction of previous accounting errors. "

At the same time, the Shenzhen Stock Exchange requires Tianhai Defense to judge the extensive impact of accounting error correction in accordance with the relevant regulations, indicating whether the relevant information disclosure of accounting error correction is in compliance, and whether the corrected financial statements need to be fully audited.

"in the light of the administrative supervision measures received by your company many times in 2023, explain the company's internal control system and implementation related to the guarantee matters, and evaluate the effectiveness of the implementation of the relevant internal controls, whether there are important or major defects, and conduct a comprehensive self-examination of whether there are other guarantee matters that should be disclosed but not disclosed." The Shenzhen Stock Exchange asked.

It is worth noting that in May last year, Tianhai Defense was issued a decision on Administrative Supervision measures by the Shanghai Securities Regulatory Bureau. Tianhai Defense has irregularities in the management and internal control of subsidiaries and the company's failure to implement the decision-making procedures for related party transactions in accordance with the internal system. The Shanghai Securities Regulatory Bureau takes administrative supervision measures on Tianhai Defense in response to the above-mentioned matters.

In response, the Shenzhen Stock Exchange asked Tianhai Defense: "Please explain in detail the internal control system and implementation of your company and its subsidiaries related to fund management and related party transactions during the reporting period." and evaluate the effectiveness of the implementation of the relevant internal controls, whether there are important or significant defects, and self-check whether there are undisclosed related party transactions as of the reply date. "

In addition, the Shenzhen Stock Exchange also asked Tianhai Defense about profits, customers, accounts receivable and accounts payable and other issues.