Special Explanation on the Issuance of Non-Standard Audit Report
Index
Special Explanation
Contact Information
Beijing Dongcheng District Chaoyangmen North Street 8, Fu Hua Mansion, Block A, 9th Floor
Telephone: +86(010)6554 2288
Facsimile: +86(010)6554 7190
About the Audit
ShineWing Certified Public Accountants
9/F, Block A, Fu Hua Mansion, No. 8, Chaoyangmen Beijie, Dongcheng District, Beijing, 100027, P.R. China
Special Explanation
To all shareholders of Dongfang Wangli Technology Co., Ltd.:
We conducted an audit of the financial statements of Dongfang Wangli Technology Co., Ltd. (hereinafter referred to as "Dongfang Wangli" or "the Company") for the year 2020, including the consolidated and parent company balance sheets as of December 31, 2020, 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. On June 28, 2022, we issued audit report No. XYZH/2022CDAA20396 with a disclaimer of opinion.
According to the requirements of the China Securities Regulatory Commission's "Rules for the Disclosure of Information by Companies Issuing Securities to the Public No. 14 - Non-Standard Unqualified Audit Opinions and Their Treatment," we provide the following explanation regarding the issuance of the aforementioned disclaimer of opinion:
- Basis and Reasons for Issuing a Disclaimer of Opinion
(1) Opening Balances
We performed corresponding audit procedures on the opening balances. Due to historical reasons, changes in management, the departure of key personnel, and the internal control situation of financial reporting, we were unable to obtain sufficient and appropriate audit evidence to determine whether the opening balances had a significant impact on the financial information for the year. We could not assess whether the prior errors necessitating retrospective restatement of the opening balances were complete, nor could we determine the extent of the impact of the aforementioned situations on the opening balances and comparative data from the previous period.