*ST Zhongtian received the relevant regulatory letter

2022-05-30 0 By

In the evening of January 24, *ST issued a notice that due to still have not hired 2021 audit accountants, received the Shanghai Stock Exchange sent a letter of supervision.On January 8, *ST Zhongtian announced that it planned to replace Zhonglian Certified Public Accountants (special General partnership), which had cooperated with SHU Lun Pan for many years, and hire Zhongxinghua Certified Public Accountants (special General partnership) as the company’s financial audit institution and internal control audit institution in 2021.However, during the board vote, some directors clearly expressed their opposition.Kong Xinming, a non-independent director who voted against the board, questioned: “Lixin Zhonglian has been the company’s auditor for many years, and it is the company that has tried its best to do so. Why should it change the auditor?”The opposition of non-independent directors is just one surprise. There are bigger surprises to come.January 22, *ST Zhongtian issued a notice to cancel the extraordinary general meeting.’Due to prudent internal discussions at Zhongxinghua Accounting Firm (a special general partnership), some auditors are unable to work normally due to the impact of the epidemic. It is expected that they cannot complete the audit work of the company within the specified time, and they have not passed the audit to become the company’s audit institution,’ the notice said.In view of the foregoing, the Board of Directors of the Company has decided to cancel the first extraordinary General Meeting of shareholders of 2022 scheduled for January 25, 2022.The board of directors of the company shall, according to the actual situation, decide the schedule of the meeting separately and issue the notice of the general meeting of shareholders in a timely manner.The Board of Directors of the Company will re-communicate with Zhongxinghua CPA Firm (special General partnership) as soon as possible and liaise with other audit firms during this period to ensure the appointment of auditors as soon as possible.According to the Stock Listing Rules of the Shanghai Stock Exchange, listed companies shall disclose their annual reports within 4 months after the end of each fiscal year, and the financial and accounting reports shall be audited by accounting firms.*ST Zhongtian received from the Shanghai Stock Exchange regulatory work letter mentioned that up to now, the company has not hired the 2021 annual audit accountant, the company’s shares are not scheduled to disclose the periodic report, the risk of being terminated.The Company and all directors, supervisors and senior managers are requested to attach great importance to the preparation and disclosure of the 2021 annual report of the Company in accordance with the requirements of the Securities Law and other regulations, engage audit institutions as soon as possible and actively cooperate with them, disclose the annual report to the public on schedule, and ensure that the information disclosed is true, accurate and complete.Kuang Yuqing, founder of Lensing Research, told Securities Daily, “The audit report must be disclosed in the annual report, which cannot be disclosed without audit.If *ST zhongtian does not hire audit institutions as soon as possible, whether the annual report can be issued within the prescribed period will be unknown.In addition, the current annual report disclosure period is the peak season for accounting firms, so it is a big challenge for accounting firms to deploy staff to participate in new projects for auditing.”