Special Explanation Regarding the Non-Standard Opinion Audit Report
Hainan Dadonghai Tourism Center Co., Ltd. (hereinafter referred to as "the Company") engaged Lixin Accounting Firm (Special General Partnership) (hereinafter referred to as "Lixin") as the auditing institution for the Company's 2021 financial report. Lixin issued an audit report numbered XH-2022-ZA12386, which expressed an inability to provide an opinion. In accordance with the relevant regulations of the "Shenzhen Stock Exchange Stock Listing Rules," "Guidelines for the Disclosure of Information by Companies Issuing Securities to the Public No. 14 - Handling of Non-Standard Unqualified Audit Opinions and Related Matters," and "Guidelines for the Content and Format of Information Disclosure by Companies Issuing Securities to the Public No. 2 - Content and Format of Annual Reports," the Company provides the following special explanation regarding the matters involved in the inability to express an opinion audit report:
I. Circumstances Leading to the Inability to Express an Opinion
- Audit Report Opinion
We accepted the engagement to audit the financial statements of Hainan Dadonghai Tourism Center Co., Ltd. (hereinafter referred to as "Dadonghai Co., Ltd."), including the consolidated and parent company balance sheets as of December 31, 2021, the consolidated and parent company income statements, consolidated and parent company cash flow statements, consolidated and parent company statements of changes in equity, and related financial statement notes. We do not express an audit opinion on the attached financial statements of Dadonghai Co., Ltd. Due to the significance of the matters described in the "Basis for Inability to Express an Opinion" section, we were unable to obtain sufficient and appropriate audit evidence to serve as a basis for expressing an audit opinion on the financial statements.