According to the Zhitong Finance App, Qin An Co., Ltd. (603758.SH) issued an announcement. As of December 31, 2022, Xu Zheng, the company's outgoing executive, held 335,000 shares of the company's shares. As of December 7, 2023, Xu Zheng reduced his holdings of the company's shares by a total of 105,000 shares in 2023. The reduction exceeded 25% of the total number of shares he held in the company at the end of the previous year, and his holdings were reduced by more than 21,300 shares, in violation of Article 12 of the “Implementation Rules for Shareholders, Directors, Supervisors, and Senior Managers of Companies Listed on the Shanghai Stock Exchange”: “If a director leaves office before the end of his term of office, he shall abide by the following restrictive regulations during the term of office determined at the time of his appointment and within 6 months after the expiration of his term of office: (1) The shares transferred each year shall not exceed the total number of shares held by the Company 25%”. The above holdings reduction did not occur during the window period or other sensitive periods, and did not constitute other illegal transactions.

Xu Zheng's excessive reduction in the company's shares was a non-subjective and deliberate violation of regulations due to Mr. Xu Zheng's own misunderstanding of the rules for reducing his holdings. After the above illegal share reduction occurred, Mr. Xu Zheng was keenly aware of the seriousness of this illegal holdings reduction and took the initiative to report and review it to the company. As of the disclosure date of the announcement, Xu Zheng had fully repurchased 21,300 shares of the company's shares, which had been reduced by a disproportionate share.