Announcement on the Reply to the Inquiry Letter Regarding the 2022 Annual Report of Shenzhen Stock Exchange
Kairuide Holdings Co., Ltd. (hereinafter referred to as "the Company" or "Kairuide") and all members of the Board of Directors guarantee that the content of this announcement is true, accurate, and complete, and that there are no false records, misleading statements, or significant omissions.
On March 2, 2023, the Company received the inquiry letter from the Shenzhen Stock Exchange titled "Inquiry Letter Regarding the 2022 Annual Report of Kairuide Holdings Co., Ltd." (Company Department Annual Report Inquiry Letter [2023] No. 1) (hereinafter referred to as "the Inquiry Letter"), requiring the Company to complete the response and disclosure of the relevant issues in the Inquiry Letter by March 10, 2023. The Company actively organized relevant departments to address the issues raised in the Inquiry Letter and entrusted intermediary institutions to verify related issues and provide opinions. The relevant situation is announced as follows:
- Regarding Gross Margin: During the reporting period, the Company's coal trading revenue and sales gross margin were 359 million yuan and 3.11%, respectively, representing year-on-year increases of 206.48% and a decline of 15.08%. The gross margin for the self-operated coal business was 3.06%, a year-on-year decline of 6.73%. The Company is requested to: (1) Explain the reasons for the increase in coal trading revenue and the specific reasons for the significant decline in gross margin, considering industry characteristics, operational conditions, price fluctuations, and cost collection; (2) Explain the sustainability of the coal trading business based on current orders and whether there are significant uncertainties regarding the Company's ability to continue operations.