Zhitong Financial APP, Cischuang Medical benefits (300078.SZ) notice, the company received the "advance notice of Administrative punishment and Market ban" issued by Zhejiang Administration of China Securities Regulatory Commission on September 25, 2023 (Zhejiang punishment word [2023] No. 28). The details are as follows:

Sichuang Medical Huihui Technology Co., Ltd., Mr. Zhang Lizhong, Mr. Wang Lin, Mr. Sun Xinjun, Mr. Wang Jun: Cischuang Medical Huihui Technology Co., Ltd. (hereinafter referred to as Cischuang Medical Hui Technology Co., Ltd.) is suspected of fraudulent issuance and information disclosure. The case has been investigated by our bureau, and our bureau intends to impose administrative penalties and take market prohibition measures on Cisuang Medical Hui and related personnel in accordance with the law. We hereby inform you of the illegal facts, reasons, basis and the relevant rights you enjoy on the basis of administrative penalties and market prohibition measures. It has been found that the facts of Sichuang Medical benefits and related personnel suspected of violating the law are as follows:

Sichuang Medical Hui is suspected of carrying out false business through wholly-owned subsidiaries Medical HuiTechnology Co., Ltd. (hereinafter referred to as Medical Hui Technology Co., Ltd.) and Hangzhou Wenran Information Technology Co., Ltd. (hereinafter referred to as Hangzhou Wenran), Shanghai Xiifan Technology Service Co., Ltd. (hereinafter referred to as Shanghai Xifan), Shenzhen Yulin Technology Service Co., Ltd. (hereinafter referred to as Shenzhen Yulin Technology Service Co., Ltd.) to carry out false business, accumulating a total of 34929355.97 yuan in business income in 2019. The inflated profit was 33021672.43 yuan, accounting for 20.03% of the total profit in the current period. Sichuang Medical Hui is suspected of carrying out false business with Hangzhou Wenran, Shanghai Xifan, Shenzhen Yulin and MIXin Huitong (Beijing) Technology Co., Ltd. (hereinafter referred to as MIXin Huitong). And confirm in advance with Guangdong Huashang Software Technology Co., Ltd. (formerly known as Guangzhou Huashang Software Technology Co., Ltd.) The income and cost of related business of Guangdong Huashang) and Henan Yujing Medical device sales Co., Ltd. (hereinafter referred to as Henan Yujing) accumulated a total of 60960200.21 yuan in business income and 6288117.34 yuan in costs from January to September 2020. The inflated profit was 52370662.54 yuan, accounting for 56.81% of the total profit in the current period.

Sichuang Medical Hui is suspected of carrying out false business through wholly-owned subsidiary Medical Hui Technology and Hangzhou Wenran, Shanghai Xiifan, Shenzhen Rain, etc., resulting in a total increase of 34929355.97 yuan in business income and 33021672.43 yuan in profits in 2019, accounting for 20.03% of the total profits of the current period. The corresponding financial data in the 2019 Annual report failed to be truthfully disclosed. Sichuang Medical Hui is suspected of carrying out false business through wholly-owned subsidiaries Medical Hui Technology and Hangzhou Wenran, Shanghai Xiifan, Shenzhen Yulin, Hangzhou Kaitai New Health Technology Co., Ltd. (hereinafter referred to as Kaitaixin), and confirm in advance the income and cost of the business related to Guangdong Huashang and Henan Yujing. In 2020, the cumulative increase in operating income was 96468786.13 yuan, the accumulated cost was 9228186.66 yuan, and the profit was 83941383.25 yuan. It accounts for 67% of the total profit in the current period. The corresponding financial data in the 2020 Annual report of Si Chuang Medical Hui have not been truthfully disclosed. The above illegal facts, there are relevant public issuance documents and periodic reports, meeting resolutions, financial information, business contracts, information notes, bank account information, information notes and materials provided by relevant customers and personnel, verification and analysis reports provided by accounting firms, relevant personnel inquiry transcripts and other evidence proof.

With regard to the illegal fraudulent issuance of Sichuang Medical benefits, according to the facts, nature, circumstances and the degree of social harm of the illegal acts, and in accordance with the provisions of paragraph 1 of Article 181 of the Securities Law, our bureau intends to decide: first, to impose a fine of 10% of the amount of illegally raised funds on Sicuang Medical Hui Technology Co., Ltd., that is, a fine of 81.7 million yuan; second, to impose a fine of 5 million yuan on Zhang Lizhong. Third, Wang Lin and Sun Xinjun were fined 2 million yuan respectively. According to the facts, nature, circumstances and the degree of social harm of the illegal act of information disclosure of Sichuang Medical benefits, and in accordance with the provisions of paragraph 2 of Article 197 of the Securities Law, our bureau intends to decide: first, to order the company to correct, give a warning and impose a fine of 4 million yuan; second, give a warning to Zhang Lizhong and impose a fine of 2.5 million yuan Third, give a warning to Wang Lin and Sun Xinjun and impose a fine of 1 million yuan respectively; fourth, give a warning to Wang Jun and impose a fine of 500000 yuan.

Zhang Lizhong, then chairman and general manager of Sichuang Medical Hui, violated the law seriously. According to Article 221 of the Securities Law and Article 3, paragraph 1, Article 4, and Article 5 of the Securities Market Prohibition provisions revised in 2015 (Securities Regulatory Commission order No. 115), our bureau intends to decide that Zhang Lizhong will be banned from the market for 10 years. From the date of the announcement of the decision, during the period of prohibition, except that they may not continue to engage in securities business in the original institutions or serve as directors, supervisors or senior managers of the original listed companies or non-listed public companies, nor shall they engage in securities business in any other institution or hold the posts of directors, supervisors or senior managers of other listed companies or non-listed public companies.