Guangdong Rongtai Industry Co.Ltd(600589) : Guangdong Rongtai: Announcement on the continued implementation of other risk warnings in stock trading

Securities code: Guangdong Rongtai Industry Co.Ltd(600589) securities abbreviation: St Rongtai Announcement No.: 2022044 Guangdong Rongtai Industry Co.Ltd(600589)

Announcement on the continued implementation of other risk warnings in stock trading

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. Important content tips:

1. In 2020, Guangdong Rongtai Industry Co.Ltd(600589) (hereinafter referred to as “Guangdong Rongtai” or “the company”) was subject to other risk warnings since May 6, 2021 due to the provisions of item 3 of article 13.9.1 of the stock listing rules of Shanghai Stock Exchange (revised in December 2020).

2. In 2021, because the company touched the provisions of items 1, 3 and 6 of article 9.8.1 of the Listing Rules of Shanghai Stock Exchange (revised in January 2022), the company’s shares continued to be subject to other risk warnings from May 6, 2022. 3. Recently, the company’s shares continued to be subject to “other risk warnings” due to the provisions of item 5 of article 9.8.1 of the Listing Rules of Shanghai Stock Exchange (revised in January 2022).

The company’s shares will continue to be subject to other risk warnings since May 23, 2022. The stock abbreviation is still “St Rongtai”, the stock code is still ” Guangdong Rongtai Industry Co.Ltd(600589) “, and the daily rise and fall limit of stock trading price is still 5%.

1、 The company’s shares are subject to other risk warnings in the early stage

1. In 2020, Dahua Certified Public Accountants (special general partnership) issued an audit report with a negative opinion on the company’s internal control. Because the company touched item 3 of article 13.9.1 of the stock listing rules of Shanghai Stock Exchange (revised in December 2020), “the internal control of the company was issued an audit report with no opinion or negative opinion in the latest accounting year”, The company’s shares have been subject to other risk warnings since May 6, 2021. For details, please refer to the suggestive announcement on warning of other risks in stock trading and suspension of trading of the company’s shares (Announcement No.: 2021040) disclosed by the company on April 30, 2021.

2. In 2021, Dahua Certified Public Accountants (special general partnership) issued an audit report with negative opinions on the company’s internal control; As of December 31, 2021, the actual controller of the company and its related parties occupied 328 million yuan of the company’s funds; From 2019 to 2021, the net profit of the company before and after deducting non recurring profits and losses for three consecutive fiscal years, whichever is lower, is negative, and the audit report of the financial accounting report of the latest fiscal year shows that there is uncertainty in the company’s sustainable operation ability, Touching the first item of article 9.8.1 of the Listing Rules of Shanghai Stock Exchange (revised in January 2022), “the company is occupied by the controlling shareholder (or the largest shareholder if there is no controlling shareholder) and its affiliates for non operational purposes, and the balance reaches more than 5% of the absolute value of the latest audited net assets, or the amount exceeds 10 million yuan, which fails to be paid off or rectified within one month” and the third item “The audit report on internal control in the latest fiscal year is issued with no opinion or negative opinion” and item 6 “the lower of the net profit before and after deducting non recurring profits and losses in the last three consecutive fiscal years is negative, and the audit report of the financial accounting report in the latest fiscal year shows that there is uncertainty in the company’s ability to continue as a going concern”, The company’s shares will continue to be subject to other risk warnings from May 6, 2022.

For details, please refer to the announcement on the continued implementation of other risk warnings in stock trading and the supplementary announcement on the continued implementation of other risk warnings in stock trading (Announcement No.: 2022025 and 2022029) disclosed by the company on April 30, 2022 and May 6, 2022.

2、 The company’s shares continue to be subject to other risk warnings

Recently, the company learned that some bank accounts have been frozen through self-examination of the status of the assets of the company and its subsidiaries, which has touched “freezing of major bank accounts” in Item 5 of article 9.8.1 of the Listing Rules of Shanghai Stock Exchange (revised in January 2022), and the company’s shares continue to be subject to “other risk warnings”.

For details of the freezing of the company’s main banks, please refer to the announcement on freezing and sealing up of some assets of the company (Announcement No.: 2022043) disclosed by the company on the same day

3、 Description of main measures taken by the board of directors to try to revoke other risk warnings

The board of directors and the management actively take the following measures for the relevant matters involved in the company’s continued implementation of other risk warnings:

The main reason for the freezing of the company’s main bank accounts is that the actual controller of the company and its related parties occupy the funds, resulting in the shortage of working capital of the listed company, unable to repay the principal and interest of creditors on schedule, and creditors take litigation and other measures for property preservation. The management of the company will actively take measures to actively coordinate customers and suppliers in the production and operation of the company, and use some unfrozen accounts for current account settlement to ensure the normal operation of production and operation; In addition, the management of the company will actively communicate and coordinate with creditors and banks, strive to solve the debt default status as soon as possible, and strive to unfreeze accounts as soon as possible.

4、 Relevant risk tips

The company’s shares will continue to be subject to other risk warnings since May 23, 2022. The stock abbreviation is still “St Rongtai”, the stock code is still ” Guangdong Rongtai Industry Co.Ltd(600589) “, and the daily rise and fall limit of stock trading price is still 5%.

The information disclosure media designated by the company are China Securities News, Shanghai Securities News, Securities Daily, securities times and the website of Shanghai Stock Exchange. The information released by the company is subject to the information disclosed in the above designated media. Please invest rationally and pay attention to investment risks.

It is hereby announced.

Guangdong Rongtai Industry Co.Ltd(600589) board of directors may 21, 2022

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