Henan Huaying Agricultural Development Co.Ltd(002321)
Special instructions of the board of directors on matters involved in the unqualified audit report with emphasis in 2021
Asia Pacific (Group) certified public accountants firm (special general partnership) (hereinafter referred to as "Asia Pacific Institute") audited the 2021 financial report of Henan Huaying Agricultural Development Co.Ltd(002321) (hereinafter referred to as "company" or "Huaying agriculture") and issued an unqualified audit report with highlighted items [Ya Kuai Shen Zi (2022) No. 01210003]. In accordance with the Listing Rules of Shenzhen Stock Exchange and the rules for the preparation and reporting of information disclosure of companies that offer securities to the public No. 14 - non-standard unqualified audit opinions and the handling of matters involved, the board of directors of the company explains the matters involved in the unqualified audit report of the highlighted item section as follows:
1、 Highlights are as follows
As stated in "XIII other important matters, (II) debt restructuring, 3 implementation of the reorganization plan (3)" in the notes to the financial statements: according to the provisions of the company's reorganization plan ruled by the Xinyang intermediate people's court, after the application of the company and the manager's report to the Xinyang intermediate people's court, the company publicly auctioned some inefficient assets on the Jingdong auction bankruptcy and liquidation platform, The auction transaction price was significantly impaired compared with the book value of the asset package. In 2021, Huaying agriculture accrued a credit impairment loss of 11813683 million yuan and an asset impairment loss of 1644236 million yuan.
The contents of this paragraph shall not affect the issued audit opinion.
2、 Explanation of the board of directors on the matters involved in the unqualified audit report with emphasis paragraphs
On November 20, 2021, Xinyang intermediate people's court officially ruled on reorganization, and the appraisal institution issued the asset appraisal report with November 20, 2021 as the appraisal base date. On December 22, 2021, Xinyang intermediate people's court ruled to approve the company's reorganization plan, and the company's reorganization entered the implementation stage of the reorganization plan. According to the provisions of the reorganization plan, the part of the company's existing assets that affects the profitability of the listed company, including foreign creditor's rights such as other receivables and prepayments, continuous losses and foreign investment that is no longer in operation, shall be stripped by means of public auction, public sale, agreement transfer and other legal means with reference to the auction law of the people's Republic of China and relevant provisions and the appraisal value in principle, To prevent it from further eroding the profits of listed companies, so as to improve the company's asset structure and optimize the quality and profitability of the company's assets. In accordance with the accounting standards for Business Enterprises No. 8 - impairment of assets, the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 - standardized operation of listed companies on the main board and the relevant accounting policies of the company, in order to more truly, accurately and fairly reflect the financial position, asset value and operating results of the company as of December 31, 2021, based on the principle of prudence, The company has made provision for impairment of assets to be disposed of.
3、 Opinions of the board of directors
The board of Directors believes that the Asia Pacific Institute has issued an unqualified audit report with emphasis on the 2021 financial report of the company, reminding the users of the financial statements that the matters of concern are objective, and the company understands and recognizes the audit report.
4、 Opinions of independent directors
The unqualified opinion audit report with emphasis issued by Asia Pacific truly and objectively reflects the financial situation of the company, and the emphasized matters are objective. We recognize the explanation of the board of directors on the matters involved in the unqualified opinion audit report with emphasis.
5、 Opinions of the board of supervisors
In accordance with the requirements of relevant regulations of China Securities Regulatory Commission and Shenzhen Stock Exchange, the board of directors of the company explained the matters involved in the unqualified audit report with emphasized items in 2021, which objectively reflected the basic financial situation of the company. The board of supervisors agreed with the description of emphasized items by the board of directors.
It is hereby explained.
Henan Huaying Agricultural Development Co.Ltd(002321) board of directors April 30, 2022
