Link: https://links.sgx.com/1.0.0/corporate-announcements/Q4K0VEXZJFQBOVJ9/52c0c2190addc22bed8300094af8ea306b8bdca2aefbf55406d871d0b54d3092

Summary:

• The auditor, Crowe Horwath First Trust LLP, issued a disclaimer of opinion on Shanghai Turbo Enterprises’ FY2023 financial statements.

• Key reasons:

  • Material discrepancy of RMB 19.3 million between the Group’s recorded receivables from Customer A and Customer A’s payable records, due to timing of revenue recognition and strict year-end booking policies by the state-owned customer.

  • Uncertainty over the recoverable value of a subsidiary investment, despite a professional valuation of RMB 11.95 million by Jones Lang LaSalle.

• The auditor also highlighted concerns over the Group’s going concern assumption, though management defended it, citing stable bank renewals, expanded loan facilities (from RMB 35 million to RMB 68.8 million at reduced rates), and growing revenues (from RMB 34 million in 2020 to RMB 79 million in 2023).

• Management expects current losses to be temporary, driven by strong sales, better asset use, and reinforced bank support, aiming to achieve profitability in the near future.