Henan Huaying Agricultural Development Co., Ltd.
Board of Directors' Special Explanation on Matters Involving the Internal Control Audit Report with Emphasis Paragraph for 2025
Beijing Guofu Jiaying Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Beijing Guofu Jiaying") audited the effectiveness of the internal control of Henan Huaying Agricultural Development Co., Ltd. (hereinafter referred to as "the Company") as of December 31, 2025, and issued an internal control audit report with an unqualified opinion and an emphasis paragraph.
In accordance with the "Shenzhen Stock Exchange Stock Listing Rules" and other relevant regulations, the Company's Board of Directors hereby provides a special explanation on the matters involved in the emphasis paragraph of the 2025 internal control audit report:
I. Content of the Emphasis Paragraph
The specific content of the matters involved in the internal control audit report with an unqualified opinion and an emphasis paragraph issued by Beijing Guofu Jiaying is as follows:
"We remind users of the internal control audit report to pay attention to the fact that Huaying Agricultural Company had a situation of non-operating fund occupation by its related party, Qichuan County Development Investment Co., Ltd., from November 2025 to December 2025. As of December 31, 2025, Huaying Agricultural Company has recovered all funds. The above situation indicates a deficiency in the internal control related to related party transactions of Huaying Agricultural Company. As of the date of the audit report, Huaying Agricultural Company had conducted a self-inspection of the above issues and rectified the above internal control deficiencies. This paragraph does not affect the audit opinion already issued on the internal control of financial reporting."