Oufeiguang received a letter of concern: it is required to explain in detail the company's assets

Today, Oufeiguang received a letter of concern from the Shenzhen Stock Exchange, requesting a detailed description of the company's assets with impairment provisions, including but not limited to asset types, impairment basis, measurement process, etc.; And explain whether the relevant signs and basis of impairment occurred in 2021, whether there was a one-time provision for large impairment, and whether the provision for impairment of relevant assets in previous years was sufficient.

Shenzhen Stock Exchange requires Oufeiguang Co., Ltd. to compensate Anhui Jingzhuo for asset impairment losses related to the arrangement of the agreement, the time and progress of the agreement signing and review procedures, and to explain in detail the reasonableness of the relevant compensation losses to be included in 2021, and whether it complies with the relevant accounting standards for business enterprises.

The letter of concern pointed out that on January 29, 2022, OFILM disclosed the "2021 Annual Performance Forecast", and it is expected that the net profit attributable to shareholders of listed companies in 2021 will be a loss of 1.9 billion to 2.7 billion yuan, deducting non-profitability. The net profit after that was a loss of RMB 1.920 billion to RMB 2.670 billion. The announcement shows that the decline in OFILM’s performance mainly includes the following reasons:

  • First, specific overseas customers terminated their purchasing relationships and the shipments of H customers’ smartphone business decreased, resulting in a significant year-on-year drop in shipments of the company’s various products;
  • Second, the company has carried out a comprehensive inventory and impairment test on various assets, and made provision for impairment of assets that may suffer impairment losses;
  • Thirdly, the company compensated the related assets impairment losses of the joint-stock company Anhui Jingzhuo Light Display Technology Co., Ltd. and its subsidiaries (referred to as "Anhui Jingzhuo").

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