With regard to the attention letter on Linzhou Heavy Machinery Group Co.Ltd(002535) , the company’s Department’s attention letter [2022] No. 84 Linzhou Heavy Machinery Group Co.Ltd(002535) board of directors:
Your company disclosed the performance forecast for 2021 on the evening of January 28, 2022, which said that your company expects to realize the net profit attributable to the shareholders of the listed company in 2021 from – 198 million yuan to – 395 million yuan, and the net profit after deducting non recurring profits and losses is expected to be – 193 million yuan to – 390 million yuan. This performance change is mainly affected by the rise in the price of raw materials, the scale of working capital and the epidemic situation.
The announcement on the proposed renewal of the accounting firm disclosed by your company on April 30, 2021 shows that your company plans to renew the appointment of Beijing Xinghua accounting firm (special general partnership) (hereinafter referred to as “Beijing Xinghua”) as the financial and internal control audit institution of your company in 2021. On January 11, 2022, your company disclosed the announcement on the proposed appointment of an accounting firm, which said that due to the comprehensive consideration of the company’s business development and changes and the personnel and time arrangement of Beijing Xinghua project, Your company intends to appoint China Audit Asia Pacific Certified Public Accountants (special general partnership) (hereinafter referred to as “China Audit Asia Pacific”) as the financial and internal control audit institution of your company in 2021. Our department is concerned about this. Please verify and explain the following matters:
1. Explain the specific reasons why Beijing Xinghua no longer acts as the annual audit accountant of your company, whether there are differences with Beijing Xinghua in work arrangement, fees, opinions, etc., whether there are controversial matters in the early communication process, and whether your company has truly, accurately and completely disclosed the reasons for changing the accounting firm, And provide Beijing Xinghua with written statements and opinions on the replacement of the annual audit accountant of your company.
2. The independent director of your company is requested to verify the reasons for the change of accounting firm and explain whether there are other matters leading to the change of accounting firm.
3. In combination with the development of the main business, explain whether there are significant adverse changes in the production and operation environment of your company, whether the main business has the ability of sustainable operation, and the measures (if any) your company has taken or plans to take to improve the ability of sustainable operation.
4. Explain whether your company has deducted the operating income in accordance with the relevant requirements on the deduction of operating income in the guidelines for self discipline supervision of listed companies of Shenzhen Stock Exchange No. 1 – business handling, and check the compliance, accuracy and completeness of the deduction of operating income.
5. Explain whether your company may touch the situation that the stock trading may be subject to delisting risk warning stipulated in the stock listing rules (revised in 2022) (hereinafter referred to as the Listing Rules). If yes, please timely disclose the risk warning announcement in accordance with the relevant provisions of the listing rules. Please make a written statement on the above issues, submit the relevant explanatory materials to our department for disclosure before February 11, 2022, and send a copy to the dispatched office at the same time. At the same time, remind your company and all directors, supervisors and senior managers to strictly abide by the securities law, the company law and other laws, as well as the stock listing rules of the exchange, and perform the obligation of information disclosure truthfully, accurately, completely, timely and fairly.
We are writing to inform you that
Shenzhen Stock Exchange listed company management department 1 January 29, 2022
