NCFC(SH:600889) Zheng Quan Zhi Xing·2025-05-12 14:47Core Viewpoint - Nanjing Chemical Fiber Co., Ltd. is undergoing a significant asset swap and plans to issue shares and pay cash to acquire a 52.98% stake in Nanjing Process Equipment Manufacturing Co., Ltd. This transaction involves the disposal of certain assets and liabilities, with financial statements prepared to reflect this restructuring [1][15]. Group 1: Audit Opinion - The audit report indicates that the simulated financial statements fairly reflect the company's financial position and operating results for the years ending December 31, 2023, and December 31, 2024 [2][3]. - The audit was conducted in accordance with Chinese CPA auditing standards, ensuring independence and adherence to professional ethics [2][3]. Group 2: Key Audit Matters - Revenue recognition is a critical audit matter, with reported revenues for 2023 and 2024 being CNY 474.04 million and CNY 662.51 million, respectively, indicating a growth of 72.57% and 69.89% [3][5]. - Asset impairment is another key area, with fixed asset impairment provisions amounting to CNY 265.07 million, intangible asset impairment provisions at CNY 61.56 million, and construction in progress impairment provisions at CNY 50.92 million as of December 31, 2024 [6][7]. Group 3: Company Overview - Nanjing Chemical Fiber Co., Ltd. was established on June 25, 1992, and is primarily engaged in the manufacturing of chemical fibers [9][10]. - The company has undergone several capital increases and stock issuances, with the total share capital reaching 366.35 million shares as of December 31, 2024 [14][15]. Group 4: Financial Reporting Basis - The financial statements are prepared based on the assumption of going concern, with no significant factors affecting the company's ability to continue operations identified for the next 12 months [17]. - The company plans to raise up to CNY 500 million through the issuance of shares to specific investors to support the acquisition transaction [15][16].