- Stock Code: 002018 Stock Abbreviation: Huaxin Tui Announcement No.: 2019-142
Anhui Huaxin International Holdings Co., Ltd. Announcement on the Reply to the Inquiry Letter from the Shenzhen Stock Exchange (SME Board Annual Report Inquiry Letter [2019] No. 156)
The company and all members of the board of directors guarantee that the content of the information disclosure is true, accurate, and complete, without false records, misleading statements, or major omissions.
Anhui Huaxin International Holdings Co., Ltd. (hereinafter referred to as "Huaxin International" or "the Company") received the inquiry letter from the Shenzhen Stock Exchange's SME Board Company Management Department regarding the "Inquiry Letter on Anhui Huaxin International Holdings Co., Ltd. 2018 Annual Report" (SME Board Annual Report Inquiry Letter [2019] No. 156) on May 16, 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 listed questions are disclosed as follows:
During the review of your company's 2018 annual report, the following matters were noted:
Question 1: Your company's 2018 financial report received a qualified opinion from the annual audit accountant. The basis for the qualified opinion includes the appropriateness and completeness of disclosures regarding related parties and their transactions, as well as significant uncertainties related to going concern. The accountant believes that the relevant matters may have a significant impact on your company's 2018 financial statements but do not have widespread implications.
(1) Your company's 2017 financial report received a disclaimer of opinion from the annual audit accountant. Please confirm whether the matters involved in the disclaimer of opinion in your company's 2017 audit report have been resolved and provide a special explanation.
Answer: The board of directors believes that the company has implemented effective corrective measures regarding the matters involved in the disclaimer of opinion for 2017. The change in the type of opinion in the 2018 audit report indicates that the pressure on the company's going concern capability has eased, the impact of related parties and transactions has improved, and the adequacy of asset impairment provisions has been resolved. Therefore, the matters involved in the disclaimer of opinion for the 2017 audit report have been partially resolved. For details, please refer to the special explanation disclosed on the same day as this announcement on the Giant Tide Information website (www.cninfo.com.cn).
The explanation from the company's annual audit accountant can be found in the special explanation disclosed on the Giant Tide Information website (www.cninfo.com.cn) regarding whether the significant impact of the matters involved in the 2017 audit report's disclaimer of opinion has been resolved.
(2) Please provide a detailed explanation from the annual audit accountant regarding the reasons and basis for determining that the matters related to the qualified opinion do not have widespread implications, and whether there are circumstances where a qualified opinion replaces a disclaimer of opinion.