The matter of Kingfa’s 6.8 billion mask order from the United States has just ended, but according to the semi-annual report released by Kingfa, it was obviously not only the United States that suffered losses in the first half of the year. A Shandong company topped the list of Kingfa with an arrears of 34.4 million yuan. Bad debt preparation ranking list!
The holy spring owes 34 million, blond hair 100% provision for bad debts!
The semi-annual report recently released by Kingfa Technology shows that the amount of accounts receivable from Shengquan New Materials by Kingfa Technology is as high as 34.4 million yuan, and 100% of the provision for bad debts is included in the list. Ranking first in bad debt provisions, Jinfa predicts that the amount cannot be recovered.
In this regard, financial sources said that due to accounting principles, bad debt provisions need to be made to offset current profits. Generally speaking, listed companies will make provisions according to the normal step-by-step process. In this case, Kingfa Technology made a one-time provision of 100%, and strong evidence is needed to show that it is indeed difficult to recover the money.
Business was generated in just half a year, and then it was dealt with as 100% bad debt. What happened in the middle? What disputes occurred? Why did Shengquan New Materials not repay the 34 million yuan it owed Kingfa Technology? All of this was filled with doubts, and Jinfa did not elaborate further on this transaction.
Bad debts may be related to US orders of 6.8 billion!
As we all know, Kingfa Technology is just a halfway house in the production of anti-epidemic materials. If it wants to make a difference in this matter, it must be good at integrating various resources.
Shengquan Group has been deeply involved in the health industry for many years. As early as April 3, the civilian masks of Shandong Shengquan New Materials have completed the EU CEEN149 certification, and in April On the 28th, it entered the white list of non-medical mask manufacturers recognized by the Ministry of Commerce that has obtained foreign standard certification or registration. Its medical surgical masks have obtained EN14683 certification and CE certification, and have obtained a Class II medical device registration certificate.
In the mask industry chain, one is good at integrating resources, and one product has been certified by the European Union. The two parties have a basis for establishing cooperation, especially when Kingfa Technology received a request on April 30 After the United States received a US$975 million mask order intention.
Faced with the sudden orders for nearly 300 million masks from the United States, it was inevitable for Jinfa to seek foreign aid. As for whether Kingfa Technology really approached Shandong Shengquan for OEM work and paid a 34 million yuan deposit. However, the US order was delayed again and again, and finally the order was cancelled. Then the 34 million deposit could not be refunded. Kingfa could only admit that he was unlucky?
Regarding the incident of 100% bad debt accrual of 34 million yuan in accounts receivable, Jinfa has not explained, and there is no information yet on whether it involves legal proceedings. The cause and effect of the matter, We don’t know. I can only say that all you old friends in the chemical industry must consider many aspects when doing business, keep your eyes open, and don’t fall into the wrong pit. </p
