2019，188bet login net profit 5.4.3 billion yuan，Loss 35 in the same period last year.900 million yuan，Achieved a turnaround from losses to profits。Looks like a good thing，But that’s not the case。

188bet login suffered an operating loss of 2 billion yuan

So what is the performance of 188bet login?？Let’s look at the business aspect first，2019 188bet login: total revenue 723.900 million yuan，YoY growth of 6.83%。Total operating cost 766.400 million yuan，4 year-on-year increase.63%。We found that the total cost was 4.3 billion yuan higher than the total revenue。

So why did HNA still achieve profitability？The main reason is that 188bet login achieved an investment income of 2.9 billion yuan in 2019。Among them，October 17, 2019，188bet login acquires 48% of Tianjin Airlines’ shares for 66.Transferred to HNA Aviation Group for a price of 8.5 billion yuan，Realized revenue of approximately 2.2 billion yuan。In addition，Hainan Airlines Holdings also disposed of the equity of its wholly-owned subsidiary Hainan Airlines Civil Aviation Investment Limited，With 13.Transfer of Beijing Guosheng 75 to Wanhou Delta for 0.4 billion yuan.10% equity，Dispose of them separately、25 aircraft sold。Proceeds from selling assets，188bet login finally achieved net profit attributable to the parent company 5.4.3 billion yuan。If excluding these non-recurring gains and losses, the net profit is actually -23.700 million yuan。

In other words，2019，188bet login achieved a turnaround from losses to profits by relying on internal equity transfers。Eliminate these，Shanghai Airlines still suffered a loss of 2.4 188bet login.

So why does 188bet login do this?

188bet login is because:The first is to avoid delisting.188bet login has suffered losses in 2018，If you still lose money in 2019，188bet login will be issued a ST delisting risk warning。If there is another loss in 2020，188bet login, the core company of the HNA Group, has to be delisted。It seems now，Loss in 2020 is a foregone conclusion，HNA’s equity transfer operation is very clever，No operation for this time，It will be delisted in 2021。

Second, there is no need to spend real money.Such related party transactions，It’s more about keeping accounts，188bet login’ equity transfer receivable from HNA Airlines is RMB 6.7 billion，As for when the money will be given to 188bet login，Unknown。According to 188bet login report，As of the end of 2019，47 more.The transfer fee of 700 million yuan has not been paid。

Third, the transaction speed is fast.This transaction can be completed in one month。Just hire an asset appraisal company for an appraisal，Both parties last board meeting，Then it will be OK once the announcement is made。If dealing with external companies，The day lily is cold。Look at several companies that 188bet login has already signed agreements to transfer to Urumqi、Capital、Beibu Gulf、Guilin and West Airlines，No transaction has been completed so far。

After so many years of capital operation，188bet login’s use of methods and rules in the capital market is naturally clever，Even the supervisory agency cannot do anything，After all, it is within the scope allowed by the rules。

Pressure of 188bet login firms

188bet login continues to suffer operating losses，Debt continues to increase，Lack of funds，Frequent related transactions，Internal mutual guarantee remains high，Accounts receivable are difficult to collect for a long time。

Tell the truth，For the accounting firm responsible for auditing 188bet login’ annual report，It’s a lot of pressure。At the same time，Doing annual report audit work，It’s a buyer’s market again，You don’t listen to Party A’s instructions，Can you continue doing this？We still remember the Enron incident in 2001，Because of Enron’s financial fraud, Enron, which was once the world’s largest energy company、Goods and Services Company Collapses，Bankruptcy assets of up to US.8 billion，Enron became the largest bankrupt company in U.S. history。The person responsible for the audit of Enron is Arthur Andersen, the world's top five accounting firm，also investigated by the US Securities Regulatory Commission。

June 15, 2002，Andersen was found guilty by the court of obstructing the government’s investigation into the Enron bankruptcy case。August 31, 2002，Andersen Accounting Firm officially withdraws from the auditing industry after 89 years。In 2001，Andersen’s turnover is 93.USD 400 million，Representing 188bet login services for 2,300 listed companies in the United States，Accounting for 17% of the total number of listed companies in the United States；390 branches in 84 countries around the world，With 4700 partners、2000 partners，Professional level 8.50,000 people。

But only one year later，Andersen, once the world’s number one 188bet login firm, fell apart due to the Enron fraud incident。The former Big Five 188bet login firms have become today’s Big Four。

Let’s look at the recent 2.2 billion 188bet login financial fraud incident of Luckin Coffee。

Ernst & Young Hua Ming Accounting Firm, which provided 188bet login for Luckin Coffee’s financial report, was questioned，Ernst & Young, one of the world’s four largest companies, is also under tremendous pressure。The outside world believes that they should bear legal responsibility for Luckin Coffee’s accounting fraud，At least，Also bear joint and several legal liability。

In response to Luckin Coffee’s alleged performance falsification，Ernst & Young Hua Ming Accounting Firm responsible for the 188bet login of Luckin Coffee stated，In the process of auditing Luckin Coffee’s 2019 annual financial report，EY discovered that some managers of Luckin Coffee inflated the company’s revenue during the relevant period through false transactions from the second quarter to the fourth quarter of 2019、Costs and fees。

But，Current 188bet login charging methods of accounting firms，Also often brings their independence into question。

188bet login issued a non-standard opinion

How does PwC, as the auditor of 188bet login, view HNA’s annual report？

You can imagine the pressure on PwC，188bet login is now surrounded by negative news，After all, provide one to satisfy Party A HNA，It is too difficult to produce an audit report that satisfies the market and the public。Treat this matter，PwC is obviously a veteran。

So what opinion did PricewaterhouseCoopers issue on 188bet login’ 2019 annual report？

In the end, 188bet login issued a non-standard opinion: That’s itOpinions on major uncertainties related to continuing operations.

What does 188bet login mean?

Everyone who studies accounting standards knows this，There is a basic assumption about the enterprise，That is, the going concern assumption。That is, when auditing the company，I think this company will always survive，Prepare various reports for this reason，If the company goes bankrupt next year，For example, your fixed assets will be depreciated over several years，It makes no sense，All accounting assumptions have come to nothing。So，Enterprise going concern means that the company can survive only if the company continues to operate、Basic prerequisites for preparing reports。However, PwC believes that there are significant uncertainties，In other words, it has serious doubts about the continued operation of 188bet login。To put it bluntly，PwC believes that there are some things that will seriously affect whether 188bet login can survive。

What is it?

188bet login believes that there are several important reasons:First, as of December 31, 2019，188bet login’ current liabilities exceed current assets by approximately 70 billion yuan。That is to say, the short-term debt repayment pressure is particularly high。The second is part of the borrowings from 188bet login in 2019、Financial lease payments and asset securitization project payables were not repaid on time，Trigger relevant default clauses，As a result, creditors may require 188bet login to pay debts at any time。Third, 188bet login has listed long-term liabilities related to the above matters totaling RMB 46.1 billion as non-current liabilities due within one year。The fourth is the explanation of the above matters，There is a significant uncertainty that may cast significant doubt on 188bet login’ ability to continue as a going concern。In 2019, 188bet login failed to repay the principal and interest on time, totaling RMB 11.7 billion。In addition，188bet login believes that since the beginning of 2020，The novel coronavirus pneumonia epidemic is spreading rapidly around the world，Having a greater impact on the air transportation industry in which 188bet login operates。The epidemic is expected to have a significant negative impact on the cash flow generated by 188bet login’ operating activities in 2020 and there is great uncertainty。

Generally speaking，The 188bet login report has the following opinion: unqualified opinion、Reserved、Unable to express opinions and negative opinions。The "unqualified opinion" includes standard unqualified opinion and non-standard unqualified opinion。The non-standard unqualified opinion has one more paragraph than the standard unqualified opinion，Usually an emphasis paragraph。If an emphasis of matter paragraph is added to an unqualified 188bet login report, it becomes a non-standard unqualified opinion，This is what we call non-standard opinions。Some people think that the former indicates that accountants believe that the quality of financial statements is acceptable；A non-standard opinion 188bet login report indicates that the accountant believes that the quality of the financial statements is not up to standard。

How 188bet login treats PwC

Although it is a buyer’s market，At this time, 188bet login has nothing to do with the audit opinion issued by PricewaterhouseCoopers，I have no choice but to say:

The company’s board of directors expresses its understanding and recognition of the unqualified 188bet login report issued by PricewaterhouseCoopers with a paragraph on major uncertainties related to going concern，Considers that the 188bet login opinion objectively reflects the company’s financial status and operating results in 2019，Full disclosure of the company’s risks。

This audit opinion from PricewaterhouseCoopers is actually very serious for 188bet login，After all, the survival of an enterprise is the first factor，Now accounting firms have doubts，Is the problem not serious?？

188bet login stated that it will take multiple measures in response to PwC’s opinions:

188bet login is responsible for the above-mentioned loan principal that was not repaid on time as stipulated in the relevant agreement，As of the date of this note，Has been partially repaid and completed the continuation account。For the above-mentioned loans that were not repaid on time，188bet login has fully communicated with various banks and other financial institutions，Does not constitute a substantial cross-breach，Financial institutions will not require early repayment of undue loans。Deadline reporting date，188bet login has approximately 30 unused credits in various financial institutions.0.5 billion yuan，Can effectively supplement 188bet login’s working capital loan needs。

To effectively resolve risks、Protect the interests of all parties，The Hainan Provincial People's Government took the lead and dispatched professionals from relevant departments to jointly establish the "Hainan 188bet login Group Joint Working Group"。The joint working group will fully assist、Fully promote the risk management of the company’s shareholder 188bet login Group。2020，Our company will also be fully assisted by the joint working group:

1.Implement dynamic control of each unit on the basis of comprehensive budget management，Including business control、188bet login Control、Risk management and control, etc.。At the same time，Implement refined management，Strictly control non-productive expenditures。For daily operating expenses such as aviation fuel，With science、Effective fuel-saving policies reduce fuel consumption，Saving costs，Comprehensive cost reduction and efficiency improvement。Through the above measures，188bet login will reduce production costs as much as possible，Maximize profit levels。

2.188bet login’s board of directors will lead the management，Based on the main aviation industry，Develop practical business policies，Improve 188bet login’s overall operational capabilities and market competitiveness。In the context of the global COVID-19 epidemic，188bet login will focus on the characteristics of flight operations during the epidemic，Develop targeted risk prevention and control measures，And vigorously develop the charter business、Customer to cargo business、Flexibly adjust aircraft types and other methods to increase overall income。While ensuring the safe and smooth operation of epidemic prevention and control and resumption of work and production，Try your best to minimize the negative impact of the new coronavirus epidemic on 188bet login’s main business income，Reduce the pressure of the epidemic on working capital，And ensure the safety and stability of production and operation。

3.Unswervingly follow the development path of “focusing on the main business”，Accelerate the disposal of non-aviation main business assets，Continuously optimize 188bet login’s asset structure，Returning cash to supplement working capital。

4. Further optimize 188bet login management level，Further access to government、Support from 188bet login institutions and other strategic partners。At the same time，Innovate and expand financing channels，Reasonable replacement of long-term and short-term debt，Optimize debt structure，Apply for a new credit line from a 188bet login institution，Strive for more direct financing and bank loans from the capital market。

188bet login rehires PwC for 12.35 million yuan

Although PwC issued a non-standard opinion to 188bet login，But after all, it is a non-standard and unqualified opinion，Relative to "Reservations、Unable to express opinions and negative opinions" and other comments，Already lighter。

And PricewaterhouseCoopers is one of the four largest accounting firms in the world。Therefore，188bet login continues to entrust PwC to be responsible for the audit work in 2020，And believes that: PwC is providing audit services to the company in 2019，Follow independence、Objective、Fair practice standards，Complete various tasks entrusted by the company well。The company plans to continue to hire PricewaterhouseCoopers to conduct the company's financial audit and internal control audit in 2020，One-year appointment，The audit fees are determined by the company’s management authorized by the shareholders’ meeting based on the actual audit work volume。

188bet login plans to pay PwC 2019 audit fees of 12.35 million yuan，The financial report audit fee is 10.45 million yuan，The internal control audit fee is 1.9 million yuan。The above remuneration is only the audit fees incurred in the company’s audit，Excluding travel expenses and other expenses incurred due to audit work。

So is PwC’s worry coming true?？Or will 188bet login’ appropriate measures turn things around?？I can only wish 188bet login good luck all the way！

*Source of 188bet login article: WeChat public account "Civil Aviation Wings" (ID:caacwing），Author: Yijia Zhiyu，Original title: "PwC has doubts about 188bet login’s ability to continue operating》.