The company and all members of the board guarantee that the content of the information disclosure is true, accurate, and complete, without false records, misleading statements, or major omissions.
Special Risk Warning:
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Zhongqian Co., Ltd. (hereinafter referred to as "Zhongqian" or "the Company") received the "Advance Notice" (Entrepreneurial Board Letter [2023] No. 68) from the Shenzhen Stock Exchange (hereinafter referred to as "SZSE") on May 5, 2023. On April 28, 2023, the Company disclosed its first annual report after being subjected to delisting risk warnings, and its 2022 financial report received an audit opinion of "unable to express an opinion." Due to the Company triggering the delisting conditions specified in Article 10.3.10 of the "Rules for the Listing of Stocks on the Growth Enterprise Market (2023 Revision)," the SZSE intends to decide to terminate the Company's stock listing. According to the relevant provisions of the "Rules for the Listing of Stocks on the Growth Enterprise Market (2023 Revision)" and the "Self-Regulatory Hearing Procedures (2020 Revision)," the Company has the right to apply for a hearing.
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The Company's board solemnly reminds investors that "China Securities Journal," "Shanghai Securities News," "Securities Times," "Securities Daily," and the Giant Tide Information Network (www.cninfo.com.cn) are the designated media for the Company's information disclosure. All information from the Company shall be based on the information published in the aforementioned designated media. Investors are advised to invest rationally and pay attention to risks.
On April 16, 2023, the Company received the "Inquiry Letter Regarding Zhongqian Co., Ltd." (Entrepreneurial Board Inquiry Letter [2023] No. 150) issued by the Management Department of the Growth Enterprise Market of the Shenzhen Stock Exchange. The Company's board attaches great importance to this and has verified the matters involved in the inquiry letter, and now responds as follows:
On April 14, 2023, our department received a special explanation regarding the audit progress of Zhongqian Co., Ltd. issued by the audit institution Zhongshun Yatai Accounting Firm (Special General Partnership) (hereinafter referred to as "Zhongshun Yatai") on April 13. The special explanation indicates that Zhongshun Yatai communicated with the Company's management via video conference on April 5, 2023, and informed the Company that, based on the existing audit evidence, it is difficult to determine the amount of sales revenue recognition for the Company's photovoltaic bracket business; the preliminary judgment is that the Company's photovoltaic bracket business has not yet formed a stable business model; there are significant uncertainties that may lead to major doubts about the Company's ability to continue as a going concern; and sufficient and appropriate audit evidence has not been obtained to verify the authenticity and accuracy of the 12.3978 million yuan sales revenue involved in the previous reserved opinion, indicating a significant possibility of fraud in the revenue recognition.
Due to the significant uncertainties regarding the Company's ongoing operations, the major limitations on the audit work of the 2022 financial statements, and the expectation that effective audit procedures cannot be executed to confirm the amount of photovoltaic bracket revenue for 2022, the Company anticipates that an audit opinion of "unable to express an opinion" will be issued for the 2022 financial statements.
Our department expresses concern regarding the above matters. Please explain why the information mentioned above was not disclosed in the announcements "Announcement on the Preparation of the Company's 2022 Annual Report and Latest Audit Progress" disclosed on April 10, 2023, and "Fourth Risk Warning Announcement Regarding the Possible Termination of the Company's Stock Listing" disclosed on April 13, 2023, and whether there are any inaccuracies or incompleteness in the information disclosure; in conjunction with the above opinions from the audit institution, please clarify whether the Company's previous disclosures regarding the photovoltaic bracket sales business do not involve any deductions that should have been made.