Yingmei Holdings (02028) issued an announcement. The company's board of directors has been awarded the company's independent non-executive director Dr. Zhong Xiaolin (Dr. Zhong...
Zhitong Finance App News, Yingmei Holdings (02028) issued an announcement. The board of directors of the company was informed by Dr. Zhong Xiaolin (Dr. Zhong), an independent non-executive director of the company, that the China Securities Regulatory Commission has issued advance notice of administrative penalties to Chongqing Huicheng Information Technology Co., Ltd. (previously known as Shenzhen Huicheng Information Technology Co., Ltd.) (“Huicheng”), a company listed on the Shenzhen Stock Exchange (stock code: 002168.SZ), for violating disclosure regulations.
According to the notice, Huicheng has underreported its sales expenses and operating costs, and inflated its profits by RMB 230 million and RMB 76.2 million in 2019 and 2020 respectively.
Dr. Chung was an independent director of Huicheng and a member of the Audit Committee from July 8, 2016 to March 15, 2022, and approved Huicheng's 2019 and 2020 annual reports. According to the notice, the China Securities Regulatory Commission will issue a warning and fine of RMB 500,000 for Dr. Chung's failure as a member of the Audit Committee to effectively monitor and evaluate Huicheng's internal control and failure to properly review Huicheng's financial data and disclosures during his term of office.
The notice is a preview of the preliminary ruling of the China Securities Regulatory Commission and does not represent the final ruling. As Dr. Chung informed, he is currently appealing his case to the China Securities Regulatory Commission.
According to the full knowledge, knowledge and conviction of the board of directors, the above matters relating to the company's current affairs are unrelated to the company's current affairs and have had no impact on the company.