According to Zhitong Financial App, Gengxing Co., Ltd. (600753.SH) announced that the company recently received the “Decision on Administrative Supervision Measures” issued by the Fujian Regulatory Bureau of the China Securities Regulatory Commission (“Fujian Regulatory Bureau”). The Fujian Regulatory Bureau decided to issue a warning letter against the company, the company's then chairman Liang Yanfeng, and then general manager and head of accounting Xia Jianfeng.

After investigation, the company disclosed the 2022 annual results pre-profit announcement on January 31, 2023. It is estimated that net profit attributable to shareholders of listed companies (“net profit”) will be 13.884,600 yuan in 2022, and net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss (“non-net profit”) of 12.264,200 yuan. On April 29, Gengxing Co., Ltd. disclosed the 2022 annual results forecast correction announcement. It is estimated that the net profit for 2022 will be revised to RMB 14.226,900, after deducting non-net profit of -1,521,600 yuan.

According to reports, the performance forecast information disclosed by Geng Xing Co., Ltd. on January 31 was inaccurate and violated relevant regulations; the company's then-chairman Liang Yanfeng and general manager and head of accounting Xia Jianfeng failed to perform their duties of diligence and due diligence and bear the main responsibility for the above issues. The Fujian Supervisory Authority decided to take administrative supervision measures against Geng Xing Co., Ltd., Liang Yanfeng, and Xia Jianfeng by issuing a warning letter.