China Hengdae Group (the “Company”) issued a Clarification Notice on 9 January 2024 in response to an institution's report issued on 1 December 2023, which cast doubt on the Company's failure to make a profit. After reviewing the report, the Company's directors considered the report to be without factual basis and noted that the Company's change in revenue confirmation method in 2021 was based on a decision that was more compliant with accounting standards in the context of the time. The Company stresses that last year's financial statements have been audited by Robin Hood Road and are subject to standard unreserved comments. The Company also notes that the report is not relevant to the Company's low gross profit and...Show More

China Hengdae Group (the “Company”) issued a Clarification Notice on 9 January 2024 in response to an institution's report issued on 1 December 2023, which cast doubt on the Company's failure to make a profit. After reviewing the report, the Company's directors considered the report to be without factual basis and noted that the Company's change in revenue confirmation method in 2021 was based on a decision that was more compliant with accounting standards in the context of the time. The Company stresses that last year's financial statements have been audited by Robin Hood Road and are subject to standard unreserved comments. The Company also notes that the report is not relevant to the Company's low gross profit and serious losses and does not provide material evidence that the Company has never been profitable. The Company confirms that the Audit Committee Members and Auditor General Pak Cheng Accounting Firm Limited have reviewed the report and will not withdraw their audit opinions on the Company's financial statements. The Company reserves the right to take legal action against the institution and urges shareholders and potential investors to act with caution.