Zhitong Financial App News, Wenfeng Co., Ltd. (601010.SH) announced that on August 21, 2023, the company received the Administrative Supervision Measures Decision of the Jiangsu Regulatory Bureau of the China Securities Regulatory Commission [2023] No. 130 - “Decision of the Jiangsu Securities Regulatory Bureau on Taking Measures to Issue Warning Letters against Wenfeng World Chain Development Co., Ltd., Huang Mingxuan, and He Lanhong”.
After investigation, in October 2021, the company revealed that Nantong Wenfeng World E-Commerce Co., Ltd., a wholly-owned subsidiary of the company, had subscribed to Shoupu Industry Preferred No. 1 Private Equity Investment Fund (hereinafter referred to as Shoupu Fund) with its own capital of 200 million yuan. When the company subscribed to Shoupu Fund, the net value of the fund unit was 0.9821 yuan. In April 2022, the net value of Shoupu Fund's unit fell to 0.1319 yuan. This loss exceeded 10% of the company's most recent audited net profit. The company neglected to fulfill its post-investment management rights and obligations, failed to promptly discover the above investment losses, and did not disclose the above investment losses in an interim announcement until July 15, 2022.