Gelonghui, April 21, 丨 Tianyun International Holdings (06836.HK) announced that on March 25, 2024, the company received a letter from the Securities Regulatory Commission stating that the CSRC is investigating these matters and raised concerns about the misstatement of bank balances (including) the Group's audited financial statements for the three fiscal years ended December 31, 2021, and unaudited financial statements (“published results”) for the six months ended June 30, 2022.
The alleged misstatement of bank balances involved two bank accounts of the Group, including (i) Tiantong Foods (Yichang) Co., Ltd., an account with Wuhan Rural Commercial Bank, a former subsidiary of a company, involving unauthorized transfers and (ii) Shandong Tiantong Food Co., Ltd.'s account with Linshang Bank.
The letter from the Securities Regulatory Commission alleges that according to the records and documents provided by the company to the SFC, as well as bank documents obtained independently by the SFC, the Group's cash and bank balances were misreported in the published results. The suspected misstatement amount was approximately RMB433.8 million to approximately RMB563.7 million, which is equivalent to over 90% of the Group's cash and bank balances and over 45% of the Group's net asset value in the published results.
In light of these matters and concerns raised in the letter from the Securities Regulatory Commission, the Group will take immediate steps to protect its assets in the interests of the company and its shareholders.
The Securities Regulatory Commission requires the Company to appoint a reputable independent advisor (“independent manager”) as agreed by the Securities Regulatory Commission to protect the Group's assets until the investigation (“investigation”) and internal control review of such matters is completed, and appropriate steps are taken to ensure the integrity of the Company's management.
Furthermore, trading of the Company's shares will continue to be suspended until further notice.