Rockontrol Technology Group Co.Ltd(688051)
Special instructions of the board of directors on matters involved in non-standard audit opinions
Deloitte Touche Tohmatsu (special general partnership), as the auditor of the 2021 financial report of Rockontrol Technology Group Co.Ltd(688051) (hereinafter referred to as “the company”), issued a qualified audit opinion on the 2021 financial report of the company. In accordance with the relevant provisions of the Listing Rules of Shanghai Stock Exchange on the science and innovation board and the rules for the preparation and reporting of information disclosure of companies offering securities to the public No. 14 – handling of non-standard audit opinions and matters involved, the board of directors of the company makes a special explanation on the matters involved in the qualified opinion audit report as follows:
1、 Contents of qualified opinions in the audit report
Deloitte formed the basis of qualified opinion on the 2021 audit report issued by the company: as disclosed in notes V, 19 and 12 to the financial statements, Shandong rock Rockontrol Technology Group Co.Ltd(688051) Co., Ltd. (hereinafter referred to as “Shandong rock”) as the buyer signed the house sales contract with the seller Liaocheng Antai urban and Rural Investment Development Co., Ltd. (hereinafter referred to as “Liaocheng Antai”) on December 27, 2021, On December 28, 2021, the company paid Liaocheng Antai the down payment of RMB 5000000000 for house purchase, which was reported in “other non current assets” in the consolidated balance sheet. According to the contract, if the house cannot complete the transfer procedures within three months after the contract is signed, both parties have the right to terminate the contract, and Liaocheng Aetna shall return all the money paid by Shandong rock without interest within three days from the date of termination of the contract. The management of the company said that because Liaocheng Aetna failed to complete the transfer procedures within the agreed time limit, Shandong rock had terminated the house sales contract signed with Liaocheng Aetna on April 22, 2022 and asked for the return of the house purchase money. On April 27 and April 29, 2022, Shandong rock received the return of 20 million yuan and 30 million yuan from Liaocheng Aetna respectively. Deloitte noted that the above housing sales contract did not stipulate the basic contract terms such as floor location, area and price of the subject matter of housing sales transaction. It is impossible to obtain sufficient and appropriate audit evidence for the commercial substance and authenticity of the transaction. Therefore, Deloitte cannot determine whether the above amount reported in “other non current assets” on the balance sheet date needs to be adjusted.
2、 Opinions of the board of directors on matters involved in the reserved opinion
The board of Directors believes that Deloitte Touche Tohmatsu (special general partnership) has issued an audit report with qualified opinions on the company’s 2021 financial report according to relevant conditions, and the matters involved in the qualified opinions fully reveal the risks of the company. For the types of audit reports issued by the annual audit institution, the board of directors of the company respects its independent judgment and draws the attention of investors to investment risks. The company has actively taken effective measures to properly solve relevant matters, strengthen the operation and management of the company and improve the sustainable operation ability of the company.
4、 Specific measures to eliminate the matter and its impact, the possibility and time of expected elimination of the impact
In view of the company’s failure to make necessary and reasonable queries during the approval and signing of the contract, the company’s subsidiary Shandong rock Rockontrol Technology Group Co.Ltd(688051) Co., Ltd. did not agree on the basic contract information such as the location, area and price of the subject floor of the house for sale in the house sales contract signed by the company. The company has implemented the cancellation procedures for the contract, and has recovered all the money as of the date of publication of this report. The company will urge its subsidiaries to strictly implement the company’s contract management measures, strengthen legal review, and strengthen supervision through internal audit to ensure the effective implementation of the contract management measures. In addition, the company will conduct a comprehensive investigation of the defects existing in the contract review and take corrective measures according to the investigation results.
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Rockontrol Technology Group Co.Ltd(688051) board of directors April 29, 2022
