Polyrocks(SH:688669) Zheng Quan Zhi Xing·2025-06-23 17:09Core Viewpoint - The company, Guangdong Jushi Chemical Co., Ltd., has received an inquiry letter from the Shanghai Stock Exchange regarding its 2024 annual report, highlighting significant adjustments in its financial performance due to impairment losses and accounting errors related to its subsidiary, Guanzhen Technology [1][2]. Financial Performance Adjustments - The company corrected its 2024 annual performance forecast, revealing substantial discrepancies in operating profit, total profit, net profit attributable to shareholders, and earnings per share due to impairment losses totaling 43.62 million yuan [1][2][11]. - The adjustments included a 43.62 million yuan impairment loss for performance compensation related to Guanzhen Technology, 11.63 million yuan for fixed asset expense processing, 21 million yuan for intangible asset impairment, and 21.75 million yuan for fixed asset impairment in leasing business [1][2][11]. Business Background and Impairment Reasons - The company signed a share transfer agreement for Guanzhen Technology, with a total payment of 60 million yuan, and an additional 72 million yuan contingent on performance over three years [2][3]. - The performance commitments for Guanzhen Technology were adjusted, with net profit targets set at 12 million yuan, 18 million yuan, and 24 million yuan for 2022, 2023, and 2024 respectively [3][4]. - Due to continuous losses and unfavorable market conditions, the company reassessed the recoverability of performance compensation, leading to a significant reduction in the estimated value of Guanzhen Technology's shares [6][7]. Internal Control and Compliance Measures - The company acknowledged deficiencies in asset value confirmation and fixed asset depreciation management, prompting a comprehensive review and adjustment of its financial reporting processes [10][11]. - The management has implemented corrective measures, including enhancing internal controls and financial management practices, to prevent similar issues in the future [10][11]. Revenue and Profitability - For 2024, the company reported revenue of 4.08 billion yuan, a year-on-year increase of 10.72%, but a net loss of 236 million yuan, reversing from a profit of 29 million yuan in the previous year [11]. - The losses were attributed to impairment losses on assets related to Guanzhen Technology and increased costs associated with new business ventures still in development [11].