Henan Kedi Dairy Co., Ltd. (hereinafter referred to as "the Company") engaged Zhejiang Tianping Accounting Firm (Special General Partnership) (hereinafter referred to as "Tianping") as the auditing institution for the Company's 2021 financial report. Zhejiang Tianping issued Audit Report No. Tianping Audit 0389, which expressed an inability to provide an opinion on the financial statements. In accordance with the relevant regulations of the "Shenzhen Stock Exchange Stock Listing Rules," "Rules for the Disclosure of Information by Companies Issuing Securities No. 14 - Handling of Non-Standard Unqualified Audit Opinions and Related Matters," and "Guidelines for the Content and Format of Information Disclosure by Companies Issuing Securities No. 2 - Content and Format of Annual Reports," the Company provides the following special explanation regarding the matters involved in the audit report expressing an inability to provide an opinion:
I. Circumstances Involved in the Audit Report Expressing an Inability to Provide an Opinion
- Inability to Provide an Opinion
We accepted the engagement to audit the financial statements of Henan Kedi Dairy Co., Ltd. (hereinafter referred to as "Kedi Dairy"), including the consolidated and parent company balance sheets as of December 31, 2021, the consolidated and parent company income statements, consolidated and parent company cash flow statements, consolidated and parent company statements of changes in equity, and related financial statement notes. We do not express an audit opinion on the attached financial statements of Kedi Dairy (hereinafter collectively referred to as "the financial statements"). Due to the significance of the matters described in the "Basis for Inability to Provide an Opinion" section, we were unable to obtain sufficient and appropriate audit evidence to serve as a basis for expressing an audit opinion on the financial statements.