ST Gaga (002650.SZ) issued an announcement. The company received China's securities regulation on May 7, 2024...
Zhitong Finance App News, ST Gaga (002650.SZ) issued an announcement. The company received the “Letter of Regulatory Concern on Matters Related to Gaga Foods Group Co., Ltd.” issued by the Hunan Regulatory Bureau of the China Securities Regulatory Commission on May 7, 2024.
According to reports, the “2023 Internal Control Self-Assessment Report” and “Internal Control Audit Report” disclosed by the company showed that the company had major flaws in the internal control of related party transactions and inventory management. The Hunan Securities Regulatory Bureau requested the company to provide written explanations on the following matters.
1. The time, amount, specific terms and implementation status of the company and related parties Ningxia Cocomei Biotechnology Co., Ltd. (“Ningxia Cocomei”) and Ningxia Yumi Starch Co., Ltd. (“Ningxia Yumi”) signed the “MSG Processing Agreement”. 2. The company's monthly procurement of raw materials, commissioned processing of monosodium glutamate, internal use of monosodium glutamate, external sales of MSG and inventory, and monthly cost accounting reconciliation with Ningxia Coco Mei and Ningxia Yumi. 3. The inventory method adopted by the company for storing the inventory in the Coco Mei factory area in Ningxia, the current state, amount and type of inventory, whether it has deteriorated or damaged, and subsequent conservation measures. 4. Whether the company has taken measures to recover losses caused by the company from the actual controller and related parties for the outsourced processing business, and ask the actual controller and related parties to explain the specific repayment plan. 5. The company signed the implementation plan and corresponding review procedures for the “MSG Substitution Processing Agreement” with Ningxia Coco Mei and Ningxia Yumi in 2024 and beyond.