Zhongxin Finance, May 6, according to the website of the Shenzhen Stock Exchange, on May 5, the Shenzhen Stock Exchange issued an inquiry letter to the 2021 annual report of HNA Investment Group.
The annual financial and accounting report of HNA Investment in 2021 was issued an audit report with a qualified opinion by Dahua Certified Public Accountants due to related guarantees, long-term equity investment, and investigation and other matters, and was issued an internal control audit report with a negative opinion.
The Shenzhen Stock Exchange requires it to explain the specific impact amount of the matters involved in the qualified opinion on the company's financial position, operating results and cash flow during the reporting period, as a proportion of the company's corresponding financial statement related items, and to explain whether the nature of profit and loss has changed after considering the impact amount.
In 2020, one of the basis for the audit report with qualified opinion issued by the accounting firm for the annual financial accounting report of HNA Investment was that the company failed to provide Hainan Haitou No. 1 Investment Partnership (Limited Partnership) (hereinafter referred to as "Haitou No. “Investment No. 1”) the project report, audit report and valuation report of the underlying asset Tishman Speyer Phase III project, the accountant cannot obtain the book value of the equity investment and the confirmed investment income of Haitou No. 1 in 2020 Sufficient and appropriate audit evidence cannot determine whether any adjustments to these amounts are necessary.
On February 19, HNA Investment announced that the first phase of the Tishman Speyer project has completed a pre-leased area of about 1.542 million square feet, accounting for 54% of the total leasable area. and preparations for final delivery, on July 28, 2020, Tishman Speyer terminated the lease with WhittleSchool according to the agreement, confiscated the deposit of US$43 million, and signed a lease agreement with St. Francis School on May 18, 2021 to lease the area. About 255,000 square feet, accounting for 42% of the project's leasable area.
Shenzhen Stock Exchange requires it to explain the main contents of the lease agreements signed for the Phase I and Phase III projects of Tishman Speyer, including but not limited to the lessor, lease area, rental amount, lease term, rights and obligations of both parties, etc. Assuming that there is a significant difference, whether there is any sign of significant impairment of relevant items, and whether the provision for impairment is sufficient and reasonable.
In addition, it should also indicate whether the company has obtained project information such as Tishman Speyer Phase I and Tishman Speyer Phase III project reports, audit reports, and valuation reports in 2021, and whether the annual audit accountant has obtained sufficient information on the book value and investment income of the relevant equity investment. Appropriate audit evidence and a description of the circumstances and impact on the company.
In the previous announcement of HNA Investment, it was disclosed that the third phase of Tishman Speyer is not yet profitable, and the project exit time is delayed and the company needs additional investment. The remaining investors of Haitou No. 1 are all related parties of the company.
The 2021 annual report shows that during the reporting period, Haitou No. 1 held a partner meeting and decided to increase its capital by 10 million yuan, of which the company increased its capital by 9.9889 million yuan. The company has made an additional paid-in investment of 5.0345 million yuan in Haitou No. 1, and there are still 48.894 billion yuan. Unpaid capital contributions.
After this capital increase, the company holds 87.6% of the partnership share of Haitou No. 1, but it has not been included in the scope of the consolidated statement.
The Shenzhen Stock Exchange required the company to explain the main background and considerations for making the above capital increase arrangement in light of the actual operation and risks of Haitou No. 1 and the actual capital contributions of other investors.
On December 5, 2020, HNA Investment disclosed that Centennial Life Insurance Co., Ltd. acquired the remaining office buildings, centralized businesses, shops, serviced apartments and parking spaces of the Yicheng Tangting project held by its subsidiary, Tianjin Yicheng Shanshui Real Estate Development Co., Ltd.
According to the 2020 annual report, HNA Investment realized an income of 1272743160 yuan due to the above transactions.
The 2021 annual report shows that during the reporting period, the company has completed the property acceptance and handover work with Centennial Life, and the annual sales of Tianjin Yicheng Tangting project are 324,700 yuan.
According to the Shenzhen Stock Exchange, HNA Investment stated in its annual report that among the main businesses engaged in by the company during the reporting period, the development, sales and leasing of major projects still included the Tianjin Yicheng Tangting project, and the company held 100% of the equity and related projects. The total cumulative investment amount is relatively large, and the pre-sale area and pre-sale amount in 2021 will be negative.
Shenzhen Stock Exchange requires it to verify the accuracy and completeness of relevant information disclosures.
The Shenzhen Stock Exchange required HNA Investment to make a written explanation on the above-mentioned issues, submit the relevant explanation materials to the Shenzhen Stock Exchange's Listed Company Management Department and disclose it to the outside world, and send a copy to the dispatched agency at the same time.