HNA Investment Group Co., Ltd. Progress Announcement on Other Risk Warnings Implemented on Company Stock
The company and all members of the board guarantee that the content of the information disclosure is true, accurate, and complete, without false records, misleading statements, or major omissions.
Special Reminder:
-
HNA Investment Group Co., Ltd. (hereinafter referred to as "HNA Investment" or "the Company") disclosed the "2020 Annual Report," "Non-operating Fund Occupation and Repayment Situation Table, Illegal Guarantee and Release Situation Table," and "Announcement on Other Risk Warnings Implemented on Company Stock and Stock Suspension" (Announcement No. 2021-037) on April 30, 2021. Through self-inspection, the Company found that as of the disclosure date of the above announcement, there were undisclosed related party guarantees that had not followed procedures. The Company was implemented with other risk warnings because it failed to resolve the illegal guarantee issues within one month after the above announcement. According to the relevant provisions of the "Shenzhen Stock Exchange Stock Listing Rules (2022 Revision)" Articles 9.8.1, 9.8.2, and 9.8.4, the Company's stock was subjected to other risk warnings starting from June 2, 2021. For details, please refer to the announcement disclosed by the Company on June 2, 2021, titled "Announcement on Other Risk Warnings Implemented on Company Stock" (Announcement No. 2021-046).
-
Due to the Company's failure to disclose related party guarantees and the lack of necessary materials such as financial statements, audit reports, and evaluation reports from the original enterprise Dalian Zhongcheng, the Company was unable to measure and report the corresponding long-term equity investments. HNA Investment's external investment management failed to design reasonable internal controls and effectively execute them. The internal control audit report for 2021 issued by Dahua Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Dahua CPA") contained a negative opinion. According to Article 9.8.1 of the "Shenzhen Stock Exchange Stock Listing Rules (2022 Revision)," this matter triggered the corresponding situation of "other risk warnings implemented on listed company stocks," and the Company's stock continued to be subject to other risk warnings. For details, please refer to the announcement disclosed by the Company on April 30, 2022, titled "Announcement on Continued Implementation of Other Risk Warnings on Company Stock" (Announcement No. 2022-039).
-
Due to the external borrowing of the Company's joint venture Hainan Haitou No. 1 Investment Partnership (Limited Partnership) (hereinafter referred to as "Haitou No. 1"), it triggered the provisions of Article 5, Item (2) of the "Guidelines for the Supervision of Listed Companies No. 8 - Regulatory Requirements for Fund Transactions and External Guarantees of Listed Companies," leading to the borrowing being passively recognized as an indirect way of lending the Company's funds to other related parties. According to Article 9.8.1 of the "Shenzhen Stock Exchange Stock Listing Rules (2022 Revision)," this matter triggered the corresponding situation of "other risk warnings implemented on listed company stocks," and the Company's stock was subjected to other risk warnings starting from June 6, 2022. For details, please refer to the announcement disclosed by the Company on June 3, 2022, titled "Announcement on Other Risk Warnings Implemented on Company Stock" (Announcement No. 2022-054).
-
On April 26, 2023, due to the Company's failure to resolve the undisclosed related party guarantees and the lack of necessary materials such as financial statements, audit reports, and evaluation reports from the original enterprise Dalian Zhongcheng, the Company was unable to measure and report the corresponding long-term equity investments. HNA Investment's external investment management failed to design reasonable internal controls and effectively execute them. Dahua CPA issued a negative opinion on the Company's internal control audit report for 2022. According to Article 9.8.1 of the "Shenzhen Stock Exchange Stock Listing Rules (2023 Revision)," this matter triggered the corresponding situation of "other risk warnings implemented on listed company stocks," and the Company's stock continued to be subject to other risk warnings.