Securities code: Henan Huaying Agricultural Development Co.Ltd(002321) securities abbreviation: ST Huaying Announcement No.: 2022045 Henan Huaying Agricultural Development Co.Ltd(002321) announcement on the company's outstanding losses reaching one third of the total paid in share capital
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Henan Huaying Agricultural Development Co.Ltd(002321) (hereinafter referred to as "the company") held the 57th meeting of the 6th board of directors on April 28, 2022, deliberated and adopted the proposal on the company's outstanding losses reaching one third of the total paid in share capital. The relevant information is hereby announced as follows:
1、 Overview of losses
According to the audit report of the Asia Pacific accounting firm, the total amount of undistributed capital stock of the partnership is more than RMB -328910371 (one-third of the paid in capital stock of the partnership as of December 20212), and the total amount of undistributed capital stock of the partnership is more than RMB 32891031 (one-third of the paid in capital stock of the partnership as of December 20212). In accordance with the company law of the people's Republic of China, the articles of association and other relevant provisions, this matter shall be submitted to the general meeting of shareholders for deliberation.
2、 Reasons for loss
Reasons for the company's performance loss in 2021:
1. In 2021, the company promoted bankruptcy reorganization, sorted out the company's assets, made provision for impairment of relevant long-term assets and bad debt provision for other receivables in accordance with accounting standards and relevant regulations of China Securities Regulatory Commission and Shenzhen Stock Exchange, which affected the profits of the current year;
2. The default interest and overdue fine arising from the overdue debts of the company have increased the financial expenses of the current year;
3. The management expenses of the current period were increased due to the employee salary, social security and bankruptcy expenses accrued during the reporting period, as well as the depreciation expenses arising from idle assets.
3、 Countermeasures
1. Focus on the development of main business and enhance core strength
In the future, the company will further optimize the business layout, achieve "focus on the main business and enhance strength", clarify the whole industry chain of duck breeding as the core main business, integrate business resources and invest in the core business, focus on improving the added value and profitability of back-end products such as cooked food and down, and form a core main business with competitive advantages.
2. Improve corporate governance structure and enhance business ability
The company will comprehensively sort out the internal control system and staffing, re formulate the salary and performance appraisal system, further optimize the incentive mechanism, strengthen performance appraisal and improve employee performance. The company will strictly abide by relevant laws and regulations, strengthen the financial and internal audit risk control process, continuously standardize and improve the internal decision-making mechanism, and constantly reform the corporate governance structure.
3. Control the scale of debt and reduce financial costs
In historical years, the company's debt scale is large, and it bears high financial expenses, which has a great adverse impact on the company's performance. After the reorganization, the company's main interest bearing liabilities will be paid off in accordance with the law, and the financial cost will be greatly reduced. The company can go into battle with light equipment, which is conducive to the company's improvement of profitability, further improve the financial structure and ensure the stability of cash flow.
4. Timely acquire high-quality assets and refinance to improve the company's performance
After completing the reorganization and realizing a smooth and orderly transition, according to the reorganization plan of Huaying agriculture, industrial investors will timely inject high-quality assets and refinance through the capital market in accordance with the provisions of relevant laws and regulations, so as to improve the sustainable operation ability and profitability of listed companies. At the same time, the company will also make full use of the advantages of investors to coordinate policy, tax and financing support for the company, and help Huaying agriculture achieve the strategic goal of "getting better and flying" as soon as possible.
The company solemnly reminds investors that the information disclosure media designated by the company include China Securities News, securities times, Securities Daily, Shanghai Securities News and cninfo（ http://www.cn.info.com.cn. ）。 All information of the company shall be subject to the information published in the above designated media.
4、 Documents for future reference
1. Resolution of the sixth session of the 57th board of directors of the company.
It is hereby announced
Henan Huaying Agricultural Development Co.Ltd(002321) board of directors April 30, 2002
