Zhitong Finance App News, Hainan Development (002163.SZ) issued an announcement. The company recently received the “Shenzhen Securities Regulatory Bureau's Decision on Issuing Warning Letter Measures against Haikong Nanhai Development Co., Ltd., Ma Jun, Yang Xiaoqiang, Qi Shengbiao, and Zhou Jun” from the Shenzhen Regulatory Bureau (hereinafter referred to as “Shenzhen Securities Regulatory Bureau”). After investigation, the company had the following problems:
1. Irregular financial accounting
Impairment provisions for non-current assets are not regulated. The fair value of some of the company's non-current assets did not reasonably adjust the reference value according to the relevant characteristics of the assets. Under the cost method, plant cost estimates did not take into account necessary expenses such as management expenses or investment interest, etc., the predicted sales price growth rate forecast did not take into account the downward trend in real estate, and the impact of delayed project progress on the fair value estimate was not fully taken into account. The relevant situation did not comply with the provisions of Article 8 (3) of “Accounting Standard for Enterprises” (Accounting Standard No. 8 - Asset Impairment) (Accounting (2006) No. 3) and section 18 of “Accounting Standards for Enterprises - Basic Standards” (Ministry of Finance Order No. 76).
Preparation for impairment of fixed assets is not standardized. The depreciation test sales price forecast for some of the company's asset groups did not take into account the downward trend after the period, and did not take into account economic depreciation based on circumstances such as production line discontinuation. Some subsidiaries' housing buildings and structures are not prudent in their assessment of impairment. There is insufficient predictive basis for selecting the projected decline in revenue in fixed asset impairment tests of some subsidiaries. The relevant circumstances did not comply with the provisions of Article 6 (1), Article 8 (3), Article 11 (1), and Article 18 of the “Accounting Standards for Enterprises - Basic Standards” (Ministry of Finance Order No. 76).
Other accounts receivable impairment preparations are not regulated. When preparing for the impairment of individual other accounts receivable, the company did not fully take into account the changes in the relevant risk characteristics. The relevant circumstances did not comply with the provisions of Article 48 (1) (1) and (3) of the “Accounting Standards for Enterprises No. 22 - Recognition and Measurement of Financial Instruments” (Accounting (2017) No. 7).
Contractual asset impairment preparations are not standardized. Objective parameters such as customer credit ratings and forward-looking adjustments were not fully taken into account when depreciating some of the company's contract assets. The credit risk of some customers increased significantly, but the company did not consider carrying out individual assessments. The relevant circumstances did not comply with the requirements of Article 48 (1) (1) and (3) of the “Accounting Standards for Enterprises No. 22 - Recognition and Measurement of Financial Instruments” (Accounting (2017) No. 7).
Furthermore, the company's execution progress accounting method for the curtain wall engineering business is unreasonable, and the timing of confirmation of sales revenue for some businesses is inaccurate.
The above financial accounting irregularities affect the accuracy of information related to the company's financial accounting reports, and do not comply with the provisions of Article 3 (1) of the “Administrative Measures on Information Disclosure of Listed Companies” (CSRC Order No. 182) and Article 3 (1) of the “Administrative Measures on Information Disclosure of Listed Companies” (CSRC Order No. 226).
II. Irregular corporate governance
The company has situations where shareholders' meeting minutes are irregular, insider information registration management is not standardized, related parties avoid voting systems are not implemented, and audit committee meetings are not in accordance with Article 41 (1) (3) and (4) of the “Listed Company Shareholders' Meeting Rules” (Securities Regulatory Commission Notice (2022) No. 13), “Listed Company Shareholders' Meeting Rules (Securities Regulatory Commission Notice (2025) No. 7)”, “Listed Company Supervisory Guidelines No. 5 - Listed Company Insider Information Insider Registration Management System” (CSRC Notice [2022]) (17) The provisions of Article 6 (1), Article 10 (1), Article 54 (1) of the “Governance Guidelines for Listed Companies” (Securities Regulatory Commission Notice (2025) No. 5), and Article 26 (3) of the “Administrative Measures on Independent Directors of Listed Companies” (CSRC Order No. 227).
Yang Xiaoqiang, chairman of the company, Ma Jun, general manager and current chairman, Qi Shengbiao, financial director, and Zhou Jun, secretary of the board of directors, bear the main responsibility for these related issues.
According to the provisions of Article 52 of the “Administrative Measures on Information Disclosure of Listed Companies” (CSRC Order No. 182), Article 53 of the “Administrative Measures on Information Disclosure of Listed Companies” (CSRC Order No. 226), Article 16 of the “Supervisory Guidelines for Listed Companies No. 5 - Insider Information Registration Management System” (Securities Regulatory Commission Notice [2022] No. 17), and Article 44 of the “Administrative Measures on Independent Directors of Listed Companies” (SFC Order No. 227), the Shenzhen Securities Regulatory Bureau decided to issue a warning letter to the company and Ma Jun, Yang Xiaoqiang, Qi Shengbiao, and Zhou Jun regulatory measures.