According to the Zhitong Finance App, Jieqiang Equipment (300875.SZ) announced that Xu Benyou, the company's former financial director, received the administrative penalty decision (Xu Benyou) from the Tianjin Regulatory Bureau of the China Securities Regulatory Commission on November 9, 2023 (document number: [2023] No. 3). The relevant information is now announced as follows:

It was discovered that Xu Benyou had the following illegal facts: (1) Formation and disclosure process of insider information Since February 2022, Mr. Pan, chairman of Jieqiang Equipment, has paid attention to the sales intentions of high-quality companies in the industry, and with the assistance of Jia Mouzhen of China International Finance Corporation (“CICC”), has communicated with Wang Mouguang, chairman of Cardino Technology (Beijing) Co., Ltd. (hereinafter referred to as “Cardino Technology”), to discuss the feasibility of Jieqiang Equipment's acquisition of Cardino Technology. On April 1, 2022, according to CICC's preliminary research on Cardino Technology, Jieqiang Equipment Pan, Liu, and relevant personnel from Cardino Technology and CICC met in Beijing to discuss the transaction intentions and transaction plans between Jieqiang Equipment and Cardino Technology, and clarify Jieqiang Equipment's intention to acquire Cardino's main shares. Mr. Pan and Cardino Technology signed the “Letter of Intent for Investment and M&A of Cardino Technology (Beijing) Co., Ltd.” on the same day. Since then, China Financial Corporation, Rongcheng Certified Public Accountants (Special General Partnership), and Beijing Tianyuan Law Firm have carried out due diligence work. On April 24, 2022, Jieqiang Equipment and Cardino Technology further conducted in-depth communication in Beijing on the core terms of the transaction plan, transaction process, etc., and reached a clear acquisition agreement. Mr. Pan signed the “Cardino Technology (Beijing) Co., Ltd. Reorganization Agreement” with Wang Mouguang and Wu Mouguang. On April 25, 2022, Jieqiang Equipment suspended trading and issued the “Suspension Notice on Planning to Issue Shares and Pay Cash to Purchase Assets and Raise Supporting Funds”. On the same day, Jieqiang Equipment and Cardino Technology officially signed the “Letter of Intent for Cooperation”. Jieqiang Equipment's planning to issue shares and pay cash to purchase assets and raise supporting funds (hereinafter referred to as “Jieqiang Equipment's major asset restructuring matters”) is a “major investment act of the company” as stipulated in section 80 (2) (2) of the “Securities Law” and a “plan to increase the company's capital” stipulated in section 80 (2) (9). This matter was inside information stipulated in section 52 of the Securities Law until it was not disclosed. Insider information was formed no later than April 1, 2022, and made public on April 25, 2022. Pan, Liu, etc. are insider information informants.

(2) Xu Benyou's insider trading “Jieqiang Equipment” (1) Xu Benyou had contacts with insider information insiders During the sensitive period of insider information, Xu Benyou, financial director of Jieqiang Equipment, contacted insider information insiders Pan and Liu several times via mobile phone. Among them, there were 4 phone calls with Pan on April 7, 8, and 9, and 8 phone calls with Liu on April 3, 4, and 6. (2) Xu Benyou used the “Wang Moujun” account to trade “Jieqiang Equipment” during the sensitive period of insider information. From April 7 to April 11, 2022, “Wang Moujun” bought 27,000 shares of “Jieqiang Equipment” from his CITIC Securities account, with a purchase transaction amount of 1,348,062 yuan. The above transaction was completed by Xu Benyou through his own operation and WeChat instructions to Wang Moujun. After insider information was disclosed, it was sold one after another, corresponding to a loss of 2,867.06 yuan (after taxes and fees). (3) Insider information on funding sources and transfers During the sensitive period, the “Wang Moujun” account raised a total of 1,350,000 yuan for the purchase of “Jieqiang Equipment”, of which Xu Benyou's own capital of 800,000 yuan and raised 550,000 yuan from Wang Moujun and others. (4) Xu Benyou's clearly abnormal behavior in trading “Jieqiang equipment” is that the contact time with insider information insiders, the time of capital changes, and the time of purchase of “Jieqiang equipment” are basically the same as the time of formation and change of insider information. On April 1, 2022, Pan and Liu met Cardino Technology and others and signed a “Letter of Intent for Investment and M&A”. On April 3, Wang Moujun sent the tripartite depository bank number to Xu Benyou via WeChat. On April 4, Xu Benyou and Wang Moujun mentioned the relevant content of the trading day, then purchased “Jieqiang Equipment” on the first trading day, the Bank Transfer Plan on April 6, and actually purchased “Jieqiang Equipment” on April 7. During this period, Xu Benyou spoke and contacted Pan and Liu several times. Second, the act of buying “Jieqiang equipment” is clearly different from normal trading habits. There are characteristics of surprise purchases, full-position purchases, significant expansion of trading volume, and strong willingness to buy. Third, Xu Benyou was unable to give a reasonable explanation for the obvious abnormalities in trading behavior.

Xu Benyou's insider trading of “Jieqiang Equipment” stocks violates the provisions of section 50 and section 53 (1) of the “Securities Law” and constitutes an act of insider trading as described in section 191 (1) of the “Securities Law”. According to the facts, nature, circumstances and extent of social harm of the offenses involved, and according to section 191 (1) of the Securities Law, the China Securities Regulatory Commission and the Tianjin Regulatory Bureau decided to fine Xu Benyou 500,000 yuan.