Announcement on Abnormal Stock Price Fluctuations of the Company
Kolin Environmental Equipment Co., Ltd. and all members of the board of directors guarantee that the content of this announcement is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
Special Reminder:
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The company's audited net profits for 2018 and 2019 were negative, and the net profit after deducting non-recurring gains and losses for 2020 was also negative. Following the disclosure of the 2020 annual report, the company's stock continued to be subject to "delisting risk warnings." According to the relevant provisions of the Shenzhen Stock Exchange's stock listing rules, the company has had negative net profits after deducting non-recurring gains and losses for three consecutive accounting years (2018, 2019, and 2020). The 2020 audit report indicated uncertainty regarding the company's ability to continue as a going concern, triggering "other risk warnings" under Article 13.3 of the Shenzhen Stock Exchange's stock listing rules (2020 revision). The company has applied to the Shenzhen Stock Exchange to revoke the delisting risk warnings and other risk warnings alongside the disclosure of the 2021 annual report. If the revocation of the delisting risk warnings and other risk warnings is not approved by the Shenzhen Stock Exchange, there is a risk of termination of the company's stock listing. As of the date of this announcement, the company has not responded to the Shenzhen Stock Exchange's inquiries regarding the 2021 annual report (Inquiry Letter No. 167 [2022]), the attention letter (Attention Letter No. 341 [2022]), the 2022 semi-annual report inquiry (Inquiry Letter No. 17 [2022]), the 2022 third-quarter report inquiry (Inquiry Letter No. 8 [2022]), the attention letter (Attention Letter No. 476 [2022]), and the attention letter regarding related matters (Attention Letter No. 69 [2023]). Failure to complete the responses within the stipulated time will result in a risk of termination of the company's stock listing.
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On December 29, 2022, the company received an "Administrative Penalty and Market Entry Ban Advance Notice" from the Jiangsu Regulatory Bureau of the China Securities Regulatory Commission. According to the notice, if the company's operating income for 2021, after deductions, is less than 100 million yuan, it may lead to the company's stock being subject to "delisting risk warnings" for the first accounting year after the warning is implemented. On the same day, the company received a decision from the Jiangsu Regulatory Bureau requiring the company to implement corrective measures as specified and complete the rectification by February 1, 2023. The company is verifying the facts and financial data involved in the decision, which, if confirmed, will lead to the operating income for 2021 being less than 100 million yuan, resulting in a risk of termination of the company's stock listing. According to the relevant provisions of the Shenzhen Stock Exchange's stock listing rules, the company's stock will be suspended from trading the day after the occurrence of relevant delisting circumstances.
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On December 30, 2022, the company received an attention letter from the Shenzhen Stock Exchange (Attention Letter No. 476 [2022]), requiring the company to verify the operating income situation that should be deducted for 2021 by February 1, 2023, actively rectify as required, recompile the 2021 operating income deduction table, and correct the relevant disclosures in the 2021 annual report. According to the facts recognized in the attention letter, the company's operating income for 2021 contains amounts that should have been deducted but were not, which will lead to the operating income after deductions being less than 100 million yuan, resulting in a risk of termination of the company's stock listing.