Financial Radar produced an article written by Wu Mo and edited by Deep Sea, regarding the announcement made by *ST Golden One on June 5th, regarding the receipt of a prior notice of administrative penalties from the Beijing Regulatory Bureau of the China Securities Regulatory Commission.
On June 4, 2024, the company received the Administrative Penalty Pre-Notice Letter No. [2024] 6 issued by the Beijing Regulatory Bureau of the China Securities Regulatory Commission.
The investigation revealed that *ST Golden One was involved in the following illegal activities: insufficient impairment of inventory in 2020 and 2021, leading to an overstatement of inventory by 6.1 billion yuan in 2020, accounting for 5.92% of the total assets at the end of the period, and an overstatement of total profits by 6.1 billion yuan, representing 21.21% of the total profits for the period; in 2021, an overstatement of inventory by 6.37 billion yuan, accounting for 7.03% of the total assets at the end of the period, and an overstatement of total profits by 0.28 billion yuan, representing 1.89% of the total profits for the period. The above issues resulted in misreporting in the annual reports of *ST Golden One for 2020 and 2021.
On April 30, 2023, *ST Golden One issued a public notice regarding the correction and retrospective adjustment of accounting errors in the financial data related to the annual reports of 2020 and 2021.
The aforementioned illegal facts are supported by evidence such as announcements, meeting documents, inquiry records, and explanations. The Beijing Regulatory Bureau believes that the actions of *ST Golden One are suspected of violating Article 78, paragraph 2 of the Securities Law of the People’s Republic of China, constituting illegal activities as described in Article 197, paragraph 2 of the Securities Law.
Based on the facts, nature, circumstances, and degree of social harm of the illegal acts, in accordance with Article 197, paragraph 2 of the Securities Law, the Beijing Regulatory Bureau intends to make the following decisions: 1. Issue a warning to *ST Golden One and impose a fine of 1.5 million yuan; 2. Issue a warning to Wang Xiaofeng and impose a fine of 700,000 yuan; 3. Issue a warning to Wang Xiaodan and impose a fine of 700,000 yuan; 4. Issue a warning to Liu Dandan and impose a fine of 600,000 yuan; 5. Issue a warning to Jiang Xuefu and impose a fine of 600,000 yuan.
In response, Zhang Yanwei, the director of Shanghai Renying Law Firm, told Financial Radar that investors who have suffered losses due to misconduct by listed companies can seek compensation through legal means. Investors who held *ST Golden One shares as of the close of trading on March 29 can sign up for free compensation through the “Financial Radar” official account (Financial Radar Code: 88). No fees are required before receiving compensation.
According to Tianyancha, *ST Golden One has invested in a total of 13 external businesses and has information on 400 trademarks in terms of intellectual property.