Gansu Ronghua Industry Group Co.Ltd(600311) : Gansu Ronghua Industry Group Co.Ltd(600311) announcement on correction of 2021 annual report and its summary

Securities code: Gansu Ronghua Industry Group Co.Ltd(600311) securities abbreviation: St ronghua Announcement No.: 2022012 Gansu ronghua industry (Group) Co., Ltd

Announcement on correction of 2021 annual report and its summary

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.

Gansu ronghua industry (Group) Co., Ltd. (hereinafter referred to as “the company”) published on April 30, 2022 in China Securities Journal, Shanghai Securities News, securities times and the website of Shanghai Stock Exchange( http://www.sse.com.cn. )Disclosed the full text and summary of the company’s 2021 annual report. After the post audit of the company, there are errors in some disclosure matters, and the relevant matters are corrected as follows:

1、 Correction of “item 3 of important contents” in the company’s 2021 Annual Report

Before correction: Dahua Certified Public Accountants (special general partnership) issued a standard unqualified audit report for the company.

After correction: Dahua Certified Public Accountants (special general partnership) has issued an unqualified audit report for the company with significant uncertainty of continuous operation. The board of directors and the board of supervisors of the company have explained the relevant matters in detail, which should be read by investors.

For details, please refer to Section VI of the company’s 2021 annual report on important matters and relevant statements in the financial report.

2、 Correction to the 2021 annual report of the company “section VI important matters IV. description of the company’s board of directors on the audit report of non-standard opinions of accounting firms”

Before correction: □ applicable √ not applicable

After correction: √ applicable □ not applicable

The matters raised by the certified public accountant in the audit report explain the contingent risks existing in the operation of the company. The board of directors of the company believes that it understands and recognizes the unqualified audit report issued by Dahua Certified Public Accountants (special general partnership) containing significant uncertainty paragraphs related to continuous operation, and draws the attention of investors to investment risks. The board of directors and management of the company will actively take effective measures to maintain the sustainable, healthy and stable development of the company and effectively safeguard the rights and interests of all shareholders and investors.

3、 Correction of the company’s 2021 annual report “section III Management Discussion and analysis of main operations during the reporting period (I) analysis of main business 1, analysis of changes in relevant subjects of income statement and cash flow statement and explanation of reasons for changes in net cash flow from operating activities”

Before correction: the reason for the change of net cash flow from investment activities: the amount in the current period was -2288303468 yuan, a decrease of 13671515968 yuan compared with the same period of the previous year, mainly due to the large amount of coke production line reconstruction paid in the previous period.

After correction: the reason for the change of net cash flow from investment activities: the amount in this period was -2288303468 yuan, an increase of 13671515968 yuan over the same period of last year, mainly due to the large amount of coke production line reconstruction paid in the previous period.

Except for the above corrections, the full text and summary of the company’s 2021 annual report have not changed. We apologize for the inconvenience caused to investors. In the future, the company will further strengthen the report preparation, information disclosure and audit, improve the quality of information disclosure and avoid similar situations.

It is hereby announced.

Board of directors of Gansu Ronghua Industrial (Group) Co., Ltd. May 4, 2022

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