Henan Huaying Agricultural Development Co.Ltd(002321) : Announcement on applying for cancellation of delisting risk warning and other risk warnings caused by major shareholders’ occupation of funds and continuing to implement other risk warnings

Securities code: Henan Huaying Agricultural Development Co.Ltd(002321) securities abbreviation: Henan Huaying Agricultural Development Co.Ltd(002321) Announcement No.: 2022047

Henan Huaying Agricultural Development Co.Ltd(002321) announcement on applying for cancellation of delisting risk warning and other risk warnings caused by capital occupied by major shareholders and continuing to implement other risk warnings

The company and all directors guarantee that the contents of the announcement are true, accurate and complete, and there are no false records, misleading statements or major omissions

Henan Huaying Agricultural Development Co.Ltd(002321) (hereinafter referred to as “the company”) has held the 57th meeting of the 6th board of directors on April 28, 2022, deliberated and adopted the proposal on applying for cancellation of delisting risk warning and other risk warnings caused by major shareholders’ occupation of funds and continuing to implement other risk warnings, and submitted an application to Shenzhen Stock Exchange (hereinafter referred to as “Shenzhen Stock Exchange”) on the same day, However, there are still uncertainties in the examination and approval of the above application. Please pay attention to the investment risks. The details are hereby announced as follows:

1、 Delisting risk warning and other risk warnings of the company’s shares

1. The company’s 2020 financial accounting report was issued with an audit report that could not express an opinion by Asia Pacific (Group) accounting firm (special general partnership) (hereinafter referred to as “Asia Pacific exchange”). According to article 14.3.1 of the stock listing rules of Shenzhen Stock Exchange (revised in 2020), the Shenzhen Stock Exchange implemented the “delisting risk warning” treatment on the company’s stock trading on April 30, 2021.

2. According to the “internal control report” issued by Shenzhen Stock Exchange on April 30, 2020, the company was unable to deal with other listed companies according to the “internal control report of Shenzhen Stock Exchange” issued by Shenzhen Stock Exchange on April 30, 2020. For details, see the announcement on delisting risk warning and other risk warning and suspension of trading of the company’s shares disclosed by the company on April 29, 2021 (Announcement No.: 2021029).

3. Henan Huangchuan Huaying poultry Corporation (hereinafter referred to as “Huaying poultry Corporation”), the former controlling shareholder of the company, carried out financing in the name of the company in 2019, which essentially constituted the occupation of non operating funds of listed companies. As of October 20, 2021, the balance of non operating funds occupied by the controlling shareholder was 898337 million yuan, accounting for 4.48% of the latest audited net assets of the company, According to articles 13.3 and 13.4 of the Listing Rules of Shenzhen Stock Exchange (2020 Revision), the Shenzhen Stock Exchange will implement the special treatment of “other risk warning” for the superposition of the company’s stock trading from November 1, 2021. For details, please refer to the announcement on the superimposed implementation of other risk warnings on the company’s shares (Announcement No.: 2021070) disclosed by the company on the designated information disclosure media on November 1, 2021.

During the delisting risk warning period, the company performed the obligation of information disclosure in strict accordance with relevant laws and regulations and departmental rules and regulations.

2、 Explanation of applying for cancellation of delisting risk warning and other risk warnings

1. The company’s operating income in 2021 was 31924578 million yuan, and its net assets at the end of 2021 were 11170416 million yuan. The company’s 2021 audit report issued by Asia Pacific was an unqualified opinion with highlighted items. In 2021, the company did not have any situation in article 9.3.11 of the stock listing rules of Shenzhen Stock Exchange (revised in 2022) (hereinafter referred to as the “Stock Listing Rules”), Therefore, according to article 9.3.7 of the stock listing rules, the company applied to Shenzhen Stock Exchange to cancel the delisting risk warning of the company’s stock trading.

2. The non operating fund occupation of the former controlling shareholder donghuaying poultry Corporation has been fully repaid, and the fund occupation of the company has been eliminated. For details, see the announcement on the completion of the return of the non operating fund occupation of the controlling shareholder (Announcement No.: 2022003) disclosed by the company in the designated information disclosure media on January 4, 2022. The independent directors of the company issued special opinions on the matter, and the annual audit accountant issued special verification instructions on the matter. Therefore, the company applies to Shenzhen Stock Exchange to cancel other risk warnings for the company’s stock trading in accordance with paragraph 1 of article 9.8.5 of the stock listing rules.

3、 Review procedures for applying for cancellation of delisting risk warning and other risk warnings

On April 28, 2022, the company held the 57th meeting of the sixth board of directors, deliberated and passed the proposal on applying for cancellation of delisting risk warning and other risk warnings caused by the occupation of funds by major shareholders, and continued to implement other risk warnings.

4、 Instructions for continuing to implement other risk warnings

According to the “internal control report” issued by Shenzhen Stock Exchange on April 30, 2020, the company was unable to deal with other listed companies according to the “internal control report of Shenzhen Stock Exchange” issued by Shenzhen Stock Exchange on April 30, 2020.

According to articles 9.8.1 and 9.8.5 of the stock listing rules, the company’s stock trading continues to be subject to other risk warnings.

5、 Opinions of independent directors

After verification, the company checked the situations involving delisting risk warnings and other risk warnings caused by major shareholders’ occupation of funds item by item according to the stock listing rules, which led to the implementation of delisting risk warnings and other risk warnings caused by major shareholders’ occupation of funds in the company’s stock trading, which has been eliminated, and it is not satisfied to cancel other risk warnings caused by the issuance of internal control audit report in 2020. The withdrawal of delisting risk warning and other risk warnings caused by the occupation of funds by major shareholders in the company’s stock trading comply with the relevant provisions of Shenzhen Stock Exchange. In view of this, we agree that the company shall apply to Shenzhen Stock Exchange to cancel the delisting risk warning and other risk warnings caused by the occupation of funds by major shareholders in accordance with the provisions of the stock listing rules. 6、 Risk tips

1. The company’s application to Shenzhen Stock Exchange to revoke the review and approval of delisting risk warning and other risk warnings for the company’s stock trading is still uncertain. If Shenzhen Stock Exchange agrees to this matter, the company’s stock trading will continue to be subject to other risk warnings. Investors are invited to pay attention to investment risks.

2. The company will timely fulfill the obligation of information disclosure according to the progress. The company solemnly reminds investors: China Securities News, Securities Daily, securities times, Shanghai Securities News and cninfo (www.cn. Info. Com. CN.) Designated information disclosure media for the company. All information of the company shall be subject to the information published in the above designated disclosure media. Please invest rationally and pay attention to investment risks.

It is hereby announced

Henan Huaying Agricultural Development Co.Ltd(002321) board of directors April 30, 2002

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