Shenzhen Huakong Seg Co.Ltd(000068)
Special instructions of the board of directors on matters involved in the audit report of non-standard audit opinions
Dahua Certified Public Accountants (special general partnership) issued an unqualified audit report with emphasis on the financial statements of the company in 2021. In accordance with the requirements of the rules for the preparation and reporting of information disclosure of companies offering securities to the public No. 14 – handling of non-standard unqualified audit opinions and matters involved (revised in 2020) and the stock listing rules of Shenzhen Stock Exchange, the board of directors of the company made a special explanation on the matters involved in non-standard unqualified audit opinions as follows:
1、 Highlight the main contents of the paragraph
“We remind users of the financial statements that the case of Shenzhen Huakong Seg Co.Ltd(000068) company’s dispute over the financial management agreement with Tongfang Investment Co., Ltd. involves a significant amount of money. At present, the case is under trial, and the future results are uncertain. The contents of this paragraph will not affect the published audit opinion.”
2、 Notes of the board of directors on matters involving emphasis
(I) after receiving the application for arbitration and notice of arbitration reply and other case materials from Beijing Arbitration Commission, the company immediately held an emergency case discussion meeting to sort out the time nodes of the case and the materials received. According to the time node of the case, the company immediately hired the agency law firm to follow up the arbitration case. The case was heard on November 13, 2020 and April 20, 2021 respectively, but has not been adjudicated. The final result remains to be decided by the arbitration institution. Based on the above facts, after communicating with the annual audit accountant, the company is unable to estimate the impact of this arbitration on the current or future profits of 2021 and other possible impacts.
(II) the board of Directors believes that the unqualified audit report issued by Dahua Certified Public Accountants (special general partnership) with emphasis on the financial statements of the company in 2021 objectively reflects the current situation of the matters involved. In addition, the financial statements of the company are prepared in accordance with the accounting standards for business enterprises in all major aspects, It fairly reflects the financial position of the company’s merger and parent company as of December 31, 2021, and the operating results and cash flow of the merger and parent company in 2021.
(III) the case is yet to be decided by the arbitration tribunal. The company will pay close attention to the progress of the arbitration case, continue to discuss the response plan with the attorney, maintain close communication with all parties concerned, and eliminate the impact of the matters highlighted in the audit report on the company as soon as possible. We will also try our best to safeguard the legitimate rights and interests of the company and all shareholders, and strive to avoid the adverse impact of this case on the company.
It is hereby announced.
Shenzhen Huakong Seg Co.Ltd(000068) board of directors March 5, 2002
