Xinjiang Beiken Energy Engineering Co.Ltd(002828) board of directors about
Special description of matters involved in the unqualified opinion audit report with emphasis
Notarial Tianye Certified Public Accountants (special general partnership) (hereinafter referred to as "notarial Tianye") issued an unqualified audit report with highlighted items (Sugong w [2022] No. A479) for the 2021 annual financial report of Xinjiang Beiken Energy Engineering Co.Ltd(002828) (hereinafter referred to as " Xinjiang Beiken Energy Engineering Co.Ltd(002828) company" and "company").
According to the requirements of the Listing Rules of Shenzhen Stock Exchange, the rules for the preparation of information disclosure of companies offering securities to the public No. 14 - handling of non-standard audit opinions and matters involved, and the standards for the content and format of information disclosure of companies offering securities to the public No. 2 - the content and format of annual report, the board of directors of the company makes the following explanations on the matters involved in the audit report:
1、 Matters covered in the highlighted paragraph of the audit report
Notarial Tianye reminded users of financial statements to pay attention. As stated in notes XIII and 2 to the financial statements, on March 17, 2022, Xinjiang Beiken Energy Engineering Co.Ltd(002828) company announced the proposal on the provision for impairment of large assets of the sun company. Affected by the conflict between Russia and Ukraine, according to the relevant provisions of the accounting standards for business enterprises, Xinjiang Beiken Energy Engineering Co.Ltd(002828) company withdraws impairment provision for some assets of wholly-owned subsidiary Xinjiang Beiken Energy Engineering Co.Ltd(002828) Ukraine Co., Ltd. (hereinafter referred to as "subsidiary"). It is estimated that Xinjiang Beiken Energy Engineering Co.Ltd(002828) company plans to withdraw impairment provision for the above matters in 2022, totaling 1924294 million yuan to 2180387 million yuan. The contents of this paragraph shall not affect the issued audit opinion.
2、 Reasons and basis for issuing an unqualified audit report with highlighted items
According to Article 9 of the auditing standards for Chinese certified public accountants No. 1503 - adding emphasized matters and other matters in the audit report, if it is considered necessary to remind the users of the financial statements to pay attention to the matters that have been presented in the financial statements and are considered to be important for the users of the financial statements to understand the financial statements according to professional judgment, when the following conditions are met at the same time, A certified public accountant shall add an emphasis paragraph to the audit report: (I) in accordance with the provisions of the auditing standards for Chinese certified public accountants No. 1502 - issuing a non unqualified opinion in the audit report, the matter will not cause the certified public accountant to issue a non unqualified opinion; (II) when the auditing standards for Chinese certified public accountants No. 1504 - communicating key audit matters in the audit report is applicable, the matter is not determined as the key audit matters communicated in the audit report.
Xinjiang Beiken Energy Engineering Co.Ltd(002828) the company has properly presented the matters involved in the highlighted items in the audit report in the notes to the financial statements. Notary Tianye believes that emphasizing the matters involved in the matter paragraph will not lead to the issuance of unqualified opinions, and has not been identified as the key audit matters communicated in the audit report. However, considering the importance of the above matters, notarial Tianye added an emphasis paragraph in the audit report to remind users of the financial statements. The emphasis paragraph does not affect the audit opinion issued.
3、 Opinions of the board of directors
In strict accordance with the principle of prudence, the audit report with unqualified opinions on highlighted items issued by notary Tianye is in line with the actual situation of the company and fully reveals the potential risks of the company. The board of directors of the company attaches great importance to the impact of the matters involved in the report on the company and will actively take effective measures to reduce the impact of the matters involved in the audit report on the company, so as to ensure the sustainable, healthy and long-term development of the company and effectively safeguard the interests of the company and the majority of investors. At the same time, investors should pay attention to investment risks.
4、 Opinions of independent directors
The independent directors believe that notarial Tianye has issued an unqualified audit report with emphasized items for the company's 2021 financial report. The contents of the audit report objectively and truly reflect the actual financial situation of the company and reveal the risks faced by the company. We have no objection to this. We agree with the special statement of the board of directors on the audit report with unqualified opinions on the highlighted items. We will continue to pay attention to and supervise the implementation of corresponding measures by the board of directors and management of the company, promote the better development of the company and safeguard the interests of investors, especially small and medium-sized investors.
5、 Opinions of the board of supervisors
The board of supervisors believes that the audit report with unqualified opinions on highlighted items issued by notary Tianye truly and objectively reflects the financial status and operation of the company in 2021, and the board of supervisors has no objection to the audit report. The special statement of the board of directors of the company on the audit report with unqualified opinions on the highlighted items is in line with the actual situation of the company, and the board of supervisors agrees with the contents of the special statement. The board of supervisors of the company will perform its supervision duties according to law, continue to pay attention to the development of relevant work of the board of directors and management, and earnestly safeguard the legitimate rights and interests of the company and all shareholders.
6、 Measures to be taken by the company
1. Personnel: up to now, all Chinese employees of Sun company in Ukraine have been safely evacuated from Ukraine;
2. Equipment: the drilling rigs and other equipment of the sub company in Ukraine have been guarded and maintained by non Chinese employees in Ukraine and local Ukrainian security companies. The company understands the latest developments of the equipment in real time through e-mail, telephone and video;
3. In terms of customers: after the war, Sun company kept in touch with customers through telephone and e-mail. In the follow-up, we will focus on the progress of payment collection and the time of resumption of work;
4. Suppliers: Suntech has officially notified all cooperative suppliers that the execution of the contract signed by both parties is suspended due to force majeure.
The company will always pay attention to the situation in Ukraine and the notice of the Chinese Embassy in Ukraine, and will resume work as soon as the situation is stable.
It is hereby explained.
