Zhitong Finance App News, Qihe Environmental Protection (00976) issued an announcement. Following the sale of Shunerz Group, the company has been discussing the accounting treatment of Shunerz Group with its auditors. After considering the applicable provisions of the Hong Kong Financial Reporting Standards relating to the Group's consolidated financial statements for the year ended 31 December 2025, the Board of Directors believes that from the date of appointment of the receivers of CRD, CRIH and CTRL shares (i.e. May 14, 2025), the Shunerz Group should stop the consolidated accounting of the Group's consolidated statements (Shunerz terminates consolidated accounting). The reason is that since the successors were appointed, the receivers appointed most of the directors to join the CRD, CRIH and CTRL boards on May 14, 2025, so the Company was unable to deal with CRD, CRIH and CTRL CRIH and CTRL exercise control and lose the ability to influence the affairs of the Shunerz Group through their interests in CRD and CRIH.
In view of the above situation, the Group will exclude the financial position of the Shunerz Group on and after May 14, 2025, and the results and cash flow of the Shunerz Group from May 14, 2025 from the consolidated financial statements for the financial year ended December 31, 2025. The Board of Directors believes that, in view of the situation of the Shunerz Group, if the Group's consolidated financial statements for the year ended December 31, 2025 are prepared according to this benchmark, it will be possible to present the Group's financial results and situation as a whole in a fairer manner.
The Board of Directors believes that the termination of the consolidated accounts by Shunerz will have a significant impact on the Group's consolidated financial statements for the year ended December 31, 2025. Further details on the financial impact of the termination of the consolidated accounts by Shunerz are set out in the Company's unaudited interim results for the six months ended 2025 and June 30, 2026, and the unaudited annual results for the year ended 31 December 2025, which will be published on September 30, 2026.