*St Jinyu (000803): More Than 30 Million Fund-Raising Loans Have Not Been Returned

On July 10, * ST Jinyu (000803. SZ) received the annual report inquiry letter. Shenzhen stock exchange requires the company to explain or make supplementary disclosure on the following matters:

1. According to the annual report, the company's monetary fund balance at the end of the reporting period was 39 million yuan, a year-on-year decrease of 63.89%; the closing balance of net assets attributable to shareholders of listed companies was - 111 million yuan; the asset liability ratio increased from 86.89% at the end of 2018 to 128.50%; the interest protection ratio of cash flow decreased from 4.07 in the same period of 2018 to 1.94. The company issued an annual audit report with significant uncertainty without reservation.

The company is required to: (1) specify in detail whether there are centralized due debts in the next 12 months, and if so, specify the specific amount, maturity time and repayment arrangement of the company; (2) Based on the company's current long-term and long-term debt, financing capacity, asset liability structure, working capital demand, overdue debt and its repayment, etc., analyze whether the company has large liquidity risk and sustainable operation risk, if so, explain the countermeasures taken or to be taken, and make necessary risk tips (if applicable); (3) Combined with the current business situation of Shandong Shifang environmental protection energy Co., Ltd., the target of the company's acquisition, this paper analyzes whether the company's assets and liabilities, cash flow and solvency have been improved after the reorganization.

2. According to the audit report, the company was sued for the loan and required the company to return the principal and interest of the borrower. The company reported the case. After investigation and confirmation, the loan was a fund-raising event when the original controlling shareholder Chengdu Jinyu Holding Group Co., Ltd. (hereinafter referred to as "Jinyu Holdings") controlled the company, and the fund-raising fund was used by the former major shareholder Jinyu holdings , which was not included in the company's account. Later, Jinyu holdings prepared to return it, but did not directly return it to the individual. Instead, it remitted the money to the company's account. The company included it in other accounts payable - Jinyu holdings. After receiving the payment, the company did not pay to the individual. The borrower sued the company for repayment. Now, after negotiation among the company, Jinyu holdings and the borrower, Jinyu holdings entrusted the company to transfer the payment to Jinyu holdings Shares payable. According to the detailed information and relevant explanations provided by the company after self inspection, the company needs to pay a total of 33.2082 million yuan of loan principal and interest, which shall be paid out of the accounts payable to Jinyu holdings. In the opinion of the accountant, it may cause significant losses to the company.

The company is required to: (1) give a detailed description of the progress of the above-mentioned debt disputes so far; (2) In combination with the background, time, decision maker, handler, relevant decision-making procedures, and the whereabouts and uses of relevant funds, it is necessary to explain whether the above matters involve the occupation of non operating funds of the company by the original controlling shareholder Jinyu holdings, and further explain whether there is any need to correct the information disclosure and financial data of previous years; (3) Detailed description of the specific situation of Jinyu holding's remittance to the company, including but not limited to the amount, time, background, etc., and further verify whether the remittance is the return and occupation of the company's funds by Jinyu holdings, and the reasons why the company fails to pay to individuals after receiving the payment; (4) analyze and explain the impact of the matter on the company based on the opinions of the annual audit accountant; (5) Further verify whether there are other matters that should be disclosed but not disclosed. The annual audit accountant is required to check the above question (2), the lawyer on question (1) (4) and the independent director on question (2) (3) (5).

3. According to the annual report, during the reporting period, the company stripped off the real estate sector and transferred all the equity of its subsidiary Nanchong Jinyu Real Estate Co., Ltd. (hereinafter referred to as "Jinyu real estate"), and Jinyu real estate was no longer included in the scope of merger of the company in 2019. The company and its subsidiaries formed a large amount of receivables for Jinyu real estate and its subsidiaries, with a net amount of 237 million yuan, including Including 20 million yuan of dividends receivable; 24.1467 million yuan of overdue bank loans guaranteed by the company for Noah Ark, a subsidiary of Jinyu real estate; and 193 million yuan of other receivables. The company conducted a single impairment test on the internal receivables formed within the scope of the original merger of RMB 237 million. According to the provisions of Zhonglian pingbao Zi [2020] No. 811, share transfer agreement and relevant supplementary agreements, the expected credit loss of the accounts during the reporting period was 83.4108 million yuan. According to the announcement on selling 100% equity of subsidiaries disclosed by the company on November 6, 2019, in order to ensure the safe realization of the seller's relevant creditor's rights, the buyer shall continue to provide the seller with the same amount of financing guarantee (including the Dividend Receivable of the listed company) with the assets of the target company after the completion of the delivery; When the target company turns losses into profits and the profit before interest, tax, depreciation and amortization (i.e. EBITA value) is positive, the target company shall use 20% of the current year's EBITA value to repay the loan to the seller (and its subsidiaries within the scope of consolidated statements).

The company is required to: (1) in combination with the specific composition, amount, aging structure and occurrence background of the above-mentioned other receivables of Jinyu real estate, further explain the situation of financing guarantee provided by the buyer for the company up to now, and whether the relevant safeguard measures have been implemented according to the agreement; if not, the reasons and the measures taken or to be taken by the company shall be explained; (2) Combined with the operation situation of Jinyu real estate in 2019, this paper describes the recovery progress of the company's receivables, the reasons for not recovering the receivables and the impact on the company; (3) detailed description of the specific process of the company's impairment test on the above receivables, and further explained the rationality and sufficiency of the company's accrued expected credit loss. Ask the annual audit accountant to check and give a clear opinion on question (3).

4. According to the annual report, the company's balance of other receivables at the end of the reporting period included other categories of funds of RMB 79.7926 million, an increase of 2337.90% year-on-year, accounting for 79.37% of the ending balance of other receivables. In addition, according to the judicial judgment of the court, the company divested the non wholly owned subsidiary Jiangsu Beikong Zhilin Electric Technology Co., Ltd. (hereinafter referred to as "Zhilin electric") during the reporting period. The original shareholders of the company need to return 76.67 million yuan of equity transfer funds to the company. After the separate impairment test, the expected credit loss of 2.211 million yuan was withdrawn during the reporting period. At the end of the period, the balance of the company's current accounts receivable of RMB 17062000 was included in the company's current accounts receivable of RMB 17062000.

The company is required to: (1) specify the specific composition of other categories of accounts in the ending balance of other receivables, including but not limited to the related entities and their associated relationships, transaction background, amount involved, aging structure, current collection situation, provision for bad debts, etc; (2) To give a detailed description of the company's collection of the above equity transfer funds so far, and explain the specific process of the company's separate impairment test on the above equity transfer funds, and the reasons, basis, rationality and sufficiency of the expected credit loss of RMB 2.1212 million, and whether it conforms to the relevant provisions of the accounting standards for business enterprises; (3) Detailed description of the company and Zhilin electrical transaction background, so far as the current collection, bad debt provision for the reasons, basis, process, rationality and adequacy. Ask the annual audit accountant to check question (2) (3) and express a clear opinion.

5. According to the annual report, the operating income of the company's store leasing business in 2019 is 10.3999 million yuan, accounting for 44.20% of the total operating income in the reporting period; the realized gross profit rate is 41.29%, with a year-on-year increase of 78.59%. The company is required to compare the actual situation and market environment of store leasing business in 2018 and the report period, and explain the reasons for the substantial increase of gross profit rate of shop leasing business in 2019.

586 million yuan of fixed assets were withdrawn in the annual report of the company in 2018. The company is required to explain the reason, basis and rationality of the company's provision of impairment loss of fixed assets in the reporting period in combination with the specific composition, asset status and use of the relevant fixed assets for which the impairment loss is accrued during the reporting period, and further explain whether the relevant provision is sufficient and timely. Require the annual audit accountant to check and give clear opinions.

7. According to page 166 of the annual report, the company, as the guarantor, provided a total of 200 million yuan for Beijing Beikong photovoltaic technology development Co., Ltd. and as the guaranteed party, it accepted the guarantee of 24.5 million yuan provided by Noah Ark. Review the accuracy of the foregoing information and the disclosure of related company guarantees (if applicable).