Hengda Group Holdings (03616) issued an announcement. In connection with the delay in publishing the 2023 full-year results, during the audit, the auditor requested the company to provide further information and explanations on the following items: the Group's advance payment of construction costs was approximately RMB 217 million on December 31, 2023, and a further advance payment of approximately RMB 106 million to one of the suppliers in January 2024, including but not limited to the commercial reasons for the advance payment, complete accounting records and documents, and the supplier concerned's use of advance payments Details and details of arrangements relating to outstanding advance payment balances; compliance assessments relating to the use of pre-sale proceeds from supervised bank accounts for the year ended 31 December 2023, and evidence and certification of loan contract compliance for certain Group loans on 31 December 2023; and detailed working capital forecasts (collectively, “required items”) taking into account the above matters for the purpose of continuing operation assessments.
In response to the requested project, the company has been actively contacting external parties (including suppliers and banks) to gather relevant information so that the auditors can complete the audit process as soon as possible. Trading of the company's shares continues to be suspended.