Announcement on the Reply to the Shenzhen Stock Exchange Inquiry Letter (SME Board Inquiry Letter [2019] No. 181)
The company and all members of the board of directors guarantee that the content of the information disclosure is true, accurate, and complete, without any false records, misleading statements, or significant omissions.
Anhui Huaxin International Holdings Co., Ltd. (hereinafter referred to as "Huaxin International" or "the Company") received the "Inquiry Letter Regarding Anhui Huaxin International Holdings Co., Ltd." (SME Board Inquiry Letter [2019] No. 181) issued by the Shenzhen Stock Exchange's SME Board Company Management Department on March 12, 2019. After receiving the inquiry letter, the Company promptly organized relevant personnel to verify and implement the issues raised in the letter, and the responses to the questions listed in the inquiry letter are disclosed as follows:
On March 8, your company disclosed the "Announcement on the Supplementary Confirmation of Previous Years' Related Parties and Supplementary Disclosure of Related Transactions," stating that your company supplemented the confirmation of 25 related parties from previous years and confirmed that the amounts of related transactions from 2015 to 2018 were 3.53 billion yuan, 52.30 billion yuan, 82.14 billion yuan, and 5.08 billion yuan, respectively. Our department expresses high concern and requests your company to provide further explanations on the following content:
Question 1: Please explain the specific reasons why your company failed to identify the above-mentioned related parties during the years 2015 to 2018, in conjunction with your company's identification methods and processes for related parties and related transactions.
Answer: