Asia Pacific (Group) Certified Public Accountants (special general partnership)
About Henan Huaying Agricultural Development Co.Ltd(002321)
Special instructions on the reply to the letter of concern
Listed company management department I of Shenzhen Stock Exchange:
Henan Huaying Agricultural Development Co.Ltd(002321) (hereinafter referred to as "the company") received your attention letter on Henan Huaying Agricultural Development Co.Ltd(002321) on January 30, 2022 (company Department attention letter [2022] No. 107). The company carefully checked and analyzed the matters in the attention letter. As the audit of the company's financial statements in 2021 is still in progress, according to the requirements of your department, Asia Pacific (Group) accounting firm (special general partnership) (hereinafter referred to as "accountant" or "our firm") hereby explains the relevant situations as follows:
1. In combination with the latest implementation progress of the reorganization plan, explain in detail the specific accounting treatment and basis of matters related to your company's bankruptcy reorganization, the specific subjects and amount involved, the impact on your company's net profit, net assets and other financial indicators in 2021, and whether the relevant accounting treatment is in line with the relevant provisions of the accounting standards for business enterprises.
Verification by annual auditor:
For matters related to bankruptcy reorganization, the following verification procedures are mainly implemented:
(1) Obtained and examined the civil ruling (2021) yu15po6-1 and the ruled company reorganization plan served by Xinyang intermediate people's court, and obtained the civil ruling (2021) yu15po6-2 and the ruled company's no objection debt right form (I) served by Xinyang intermediate people's court;
(2) Obtained and checked the report on the disposal of some assets of the company submitted by the company's manager to Xinyang intermediate people's court, and learned about the progress of the disposal of relevant assets on JD auction bankruptcy Qiangqing platform;
(3) Obtain and check the restructuring investment agreement signed by the company and relevant restructuring investors, bank receipts and bank statements for the recording of restructuring investment funds, entrusted payment agreement and relevant instructions;
(4) Obtained and checked the register of securities holders of the company as of December 31, 2021 after completing the relevant procedures for the registration of converted shares in Shenzhen Branch of China Securities Depository and Clearing Co., Ltd.
As of the reply date of this note, the audit of the company's financial statements in 2021 is still in progress. According to the relevant information and understanding obtained by us, the Asia Pacific (Group) accounting firm (special general partnership) is unable to determine the basis for the recognition of the company's losses and benefits from debt restructuring Express opinions on the specific accounting treatment of matters related to bankruptcy and reorganization, whether they comply with the relevant provisions of the accounting standards for business enterprises, the specific accounting subjects and amounts involved, and the impact on the company's net profit, net assets and other financial indicators in 2021. The specific audit opinions shall be subject to the 2021 annual audit report issued by us.
2. Describe in detail the specific composition and corresponding amount of the operating income in the reporting period, and explain whether the relevant income of your company should be deducted and its judgment basis item by item in accordance with the provisions of 4.2 "matters related to the deduction of operating income" in the guidelines for the self discipline supervision of listed companies No. 1 - business handling of the exchange.
Verification by annual auditor:
As of the reply date of this note, the audit of the company's financial statements in 2021 is still in progress, and we are unable to express opinions on whether the relevant income of the company should be deducted and the basis for judgment. The specific audit opinions shall be subject to the audit report on the deduction of operating income in 2021 issued by us.
3. Based on the answers to questions 1 and 2, further explain whether your company avoids the risk of stock delisting by means of profit adjustment and improper accounting treatment.
Verification by annual auditor:
As of the date of listing, the company has not replied to the improper disposal of the listed company's profits through the accounting method. Since the audit of the company's 2021 financial statements is still in progress, with the audit, we may obtain new or further audit evidence. The specific audit opinion shall be subject to the audit report of 2021 financial statements issued by the company.
Asia Pacific (Group) Certified Public Accountants (special general partnership) February 25, 2002
