Securities code: 600226 securities abbreviation: Zhejiang Huge Leaf Co.Ltd(600226) Announcement No.: 2022-011 Zhejiang Huge Leaf Co.Ltd(600226)
Progress announcement on other matters related to the implementation of risk warning 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, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents. Important content tips:
Zhejiang Huge Leaf Co.Ltd(600226) (hereinafter referred to as “the company” or “Hanye”) issued a negative opinion audit report on the internal control in 2020. According to article 13.9.1 of the stock listing rules of Shanghai Stock Exchange (revised in December 2020), the company’s shares have been subject to other risk warnings since May 20, 2021.
According to relevant regulations, the company disclosed the progress announcement on other risk warning related matters of stock trading (Announcement No.: 2021-085) on June 19, 2021, July 17, 2021, August 17, 2021, September 17, 2021, October 16, 2021, November 18, 2021 and December 18, 2021 Announcement on the progress of other risk warning related matters in stock trading (Announcement No.: 2021-097), announcement on the progress of other risk warning related matters in stock trading (Announcement No.: 2021-101), announcement on the progress of other risk warning related matters in stock trading (Announcement No.: 2021-109) Announcement on the progress of other risk warning related matters in stock trading (Announcement No.: 2021-113), announcement on the progress of other risk warning related matters in stock trading (Announcement No.: 2021-122), announcement on the progress of other risk warning related matters in stock trading (Announcement No.: 2021-125).
1、 Basic information and progress of implementing other risk warnings
(I) basic information
Tianjian Certified Public Accountants (special general partnership) issued a negative opinion audit report on the company’s internal control in 2020 and believes that the company’s internal control has the following major defects:
1. Hanye did not disclose the 2019 annual report and the first quarter report of 2020 within the statutory period. On March 25, 2021, Hanye Co., Ltd. received the decision on administrative punishment ([2021] No. 3) from Zhejiang regulatory bureau of China Securities Regulatory Commission, and was subject to administrative punishment for illegal information disclosure. Hanye shares has major defects in the internal control of information disclosure.
2. Chengdu Yanlong Technology Co., Ltd. (hereinafter referred to as “Yanlong technology”), a subsidiary of Hanye Co., Ltd., resigned a large number of employees in 2020, resulting in business stagnation; On December 31, 2020, the accounts receivable from four major customers totaled 342431800 yuan, which could not be recovered within the credit period agreed in the contract. Therefore, it leads to a large amount of impairment loss of accounts receivable and impairment loss of long-term equity investment including goodwill. Yanlong technology has major defects in customer collection management, and Hanye Co., Ltd. has major defects in the control of Yanlong technology.
According to article 13.9.1 of the Listing Rules of Shanghai Stock Exchange (revised in December 2020), the company’s shares have been subject to other risk warnings since May 20, 2021. For details, see the announcement on canceling delisting risk warnings and implementing other risk warnings and suspension (Announcement No.: 2021-075) disclosed by the company on May 19, 2021.
(II) solutions and progress
1. The company will further strengthen the construction of internal control system, revise and improve various internal control systems of the company in combination with the actual situation of the company, improve the internal control system of the company, optimize the business and management process of the company, strengthen the internal control management and implementation of information disclosure, and ensure the continuous and standardized operation of the company.
2. Strengthen the management of each branch and subsidiary, strictly require each branch and subsidiary to perform the corresponding approval process according to the company’s internal control management authority and approval decision-making procedures, and the person in charge of each branch and subsidiary shall regularly report the business operation and progress of major events to the company’s management to prevent the occurrence of business risks.
3. Strengthen internal control training to ensure that the company maintains effective internal control in all major aspects.
4. Up to now, four major customers of Yanlong technology and its wholly-owned subsidiary, Shanghai Yeyou Network Technology Co., Ltd. (hereinafter referred to as “Shanghai Yeyou”), including jwf Development Corp., apply development limited, unusual Enterprise Limited and thumb technology enterprise Inc., have failed to fulfill their collection obligations as promised, and the relevant accounts receivable have not been recovered. On September 10, 2021, Yanlong technology and Shanghai pageyou submitted bankruptcy applications to the Supreme Court of Samoa against the above debtors jwf Development Corp., approve development limited, unused Enterprise Limited and thumbtechnology enterprise Inc., and the Supreme Court of Samoa has accepted and filed the case. For details, please refer to the announcement on litigation of subsidiaries against debtors (Announcement No.: 2021-108) disclosed by the company on September 14, 2021. The company will pay close attention to the progress of the above litigation matters, strive to safeguard the rights and interests of the company and all shareholders through various legal channels, and timely perform the obligation of information disclosure according to the progress of relevant matters.
2、 Description of other risk warnings implemented on the company’s shares
Due to the negative opinion audit report on the company’s internal control in 2020, the company’s shares were subject to other risk warnings in accordance with item (III) of article 13.9.1 of the stock listing rules of Shanghai Stock Exchange (revised in December 2020).
According to article 9.8.4 of the Listing Rules of Shanghai Stock Exchange (revised in January 2022), the company will issue a prompt announcement every month to disclose the progress of the above matters in a timely manner.
The information disclosure media designated by the company are China Securities News, Shanghai Securities News, securities times and the website of Shanghai Stock Exchange. All information of the company shall be subject to the information disclosed in the above designated media. Please pay attention to the risks.
It is hereby announced.
Zhejiang Huge Leaf Co.Ltd(600226) board of directors
January 18, 2022
