OFILM's 2018 performance announcement: profit shrunk by 2.3 billion, scaring shareholders...

2. The reasons and main responsible persons for the company’s failure to identify the above-mentioned problems in its previous performance forecast and performance report.

3. Whether this performance adjustment involves a one-time provision for inventory impairment and a large-scale inventory carry-over cost for financial cleansing, and whether this accounting treatment is sufficiently prudent. Please ask the annual auditor to give a professional opinion.

4. Your company and the annual auditor determined the specific time for the substantial downward revision of performance results, and whether your company has failed to disclose the performance revision announcement in a timely manner.

5. Please list in detail the reasons why your company’s net profit in the first quarter of 2019 dropped significantly compared with the same period last year.

In fact, this is not the first time that OFILM has had performance promises that are inconsistent with actual conditions. The company first released its half-year performance forecast in July 2011, predicting that the net profit attributable to shareholders of the listed company from January to June would drop by 5%-30% compared with the same period last year. It later released a performance revision, predicting a year-on-year decrease of 170% to 190%, and an actual decrease of 179%. In the third quarter of 2017, it predicted that the net profit attributable to shareholders of the listed company would be 1.29 billion to 1.58 billion yuan, an increase of 80% to 120% over the same period last year, but the actual net profit attributable to shareholders of the listed company was only 822 million yuan.