Financial Transactions and Audit Issues - The company has transferred approximately RMB 11,400,000 to repay shareholder loans and RMB 19,900,000 for construction payments related to its subsidiary, Guosilicon New Materials (Inner Mongolia) Co., Ltd.[3] - The company identified discrepancies in financial records amounting to RMB 31,300,000 during the audit process, leading to necessary adjustments in the accounts of its subsidiaries[13] - The company’s accounting personnel were unaware of payments made on behalf of Guosilicon, resulting in unrecorded transactions in its accounts[15] - The company is currently facing challenges in obtaining VAT invoices from contractors, which has delayed the audit process[37] - The resignation of the previous auditor has further delayed the progress of the audit work[47] - The company recorded a total amount of approximately RMB 11.4 million in shareholder loans and RMB 19.9 million in advances, with audit procedures in place to verify the authenticity of these transactions[75] - Approximately RMB 31.1 million was identified as other receivables related to audit issues, leading to delays in the publication of financial results[110] - The company faced challenges in recruiting qualified auditors due to COVID-19 restrictions, impacting its ability to manage financial and audit processes effectively[112] Business Development and Strategy - The company plans to develop the silica sand business due to increasing domestic demand in industries such as glass, construction materials, and petrochemicals[6] - A cash return of RMB 31,000,000 was generated from the sale of a wholly-owned subsidiary in June 2022, which will be reinvested into the silica sand manufacturing business[8] - The company conducted a comprehensive feasibility study on the silica sand business, including market demand analysis and profit forecasts, indicating significant potential for business volume and profitability[8] - The company aims to align its silica sand business with its core operations, enhancing long-term growth potential for shareholders[6] - The company is exploring various business opportunities, including asset sales, acquisitions, and diversification strategies to improve overall growth potential[6] - The company is expected to improve its loss situation once the production line for silica sand is operational[90] Internal Control and Compliance - The internal control review report identified several weaknesses and proposed improvements, which the company plans to implement by the end of June 2024[52] - The internal control consultant found no significant internal control deficiencies, only minor weaknesses that require attention[50] - The internal control consultant identified several medium to low-level control weaknesses within the group's internal control system[96] - The company has implemented remedial measures and internal control improvements expected to be completed by June 2024 to address major findings from internal control assessments[99] - The company is committed to complying with GEM listing rules and will regularly review and update its internal control policies[99] Financial Performance - Revenue for the year ended December 31, 2022, was approximately RMB 62.287 million, primarily from the research, production, and sales of fiberglass grating and epoxy wedge products in China[63] - The company reported revenue of RMB 62.287 million for the year ended December 31, 2022, and RMB 25.613 million for the six months ended June 30, 2023, indicating a decline in performance[103] - The company experienced a net loss of RMB 916,000 for the six months ended June 30, 2023, compared to a profit of RMB 2.615 million for the year ended December 31, 2022[103] - Total assets decreased from RMB 111.785 million as of December 31, 2022, to RMB 107.450 million as of June 30, 2023[103] - Total liabilities decreased from RMB 40.924 million as of December 31, 2022, to RMB 37.505 million as of June 30, 2023[103] Corporate Governance and Meetings - The company plans to hold a board meeting on December 28, 2023, to address corporate governance issues, as no such meetings were held in 2022[66] - The audit committee's first meeting for the year is scheduled for January 17, 2024, to discuss matters related to the 2023 annual audit[66] - The company plans to publish its annual report for the year ending December 31, 2022, on January 22, 2024[89] - The company plans to publish its annual results for the year ended December 31, 2022, on January 17, 2024, and the first quarter results for the three months ended March 31, 2023, on January 29, 2024[101] - The company has been continuously updating shareholders and investors on significant information since the suspension of its shares[90] - The board believes that the ongoing implementation of remedial measures will not have a significant adverse impact on the group's operations and financial condition[87] - The board has confirmed that all significant information necessary for shareholders and investors to assess the company's status has been disclosed[91] Construction and Land Use - The company has successfully changed the land use of approximately 19.52 acres from agricultural to industrial use as of March 2023, allowing for the purchase of this land in June 2023[17] - A new lease agreement was established in June 2023, granting Guosilicon the use of 6 acres of industrial land for a period of 10 years at a monthly rent of RMB 1,667[17] - The company has signed six contracts with multiple suppliers for the construction of a new production line, with two contracts signed in November 2022 totaling RMB 7,656,546 and RMB 6,342,421 respectively[18] - The applicable percentage rate for each contract does not exceed 5%, but the transactions under the two contracts exceed 5% and are subject to disclosure requirements under GEM listing rules[18] - Due to the impact of COVID-19 and the remote location of the Inner Mongolia mining area, the company has faced delays in project completion and has agreed with contractors to make payments based on actual progress[27]
硅鑫集团(08349) - 2023 - 年度业绩