Zhitong Finance App News, ST Diweixun (300167.SZ) announced that the company recently received the “Decision of the Shenzhen Securities Regulatory Bureau to Order Corrective Measures against Shenzhen Diweixun Co., Ltd.” ([2023] No. 281) (“Decision No. 281”) and the “Decision of the Shenzhen Securities Regulatory Bureau on Issuing Warning Letter Measures against Ji Hong and Ji Gang” ([2023] No. 282) (abbreviation: “Warning Letter”) issued by the Shenzhen Securities Regulatory Bureau.

The main content of “Decision No. 281”: After investigation, your company did not fully evaluate the signs of impairment of some accounts receivable in the previous year, resulting in insufficient and careless preparation of some accounts receivable, in violation of section 3 (1) of the “Administrative Measures on Information Disclosure of Listed Companies” (Securities Regulatory Commission Order No. 182, same below) and the provisions of Articles 46 and 58 of “Corporate Accounting Standard No. 22 - Confirmation and Measurement of Financial Instruments”. According to the provisions of Article 52 of the “Administrative Measures on Information Disclosure of Listed Companies”, our bureau has decided to take corrective administrative supervision measures against your company. Your company shall take effective measures to make corrections in accordance with the following requirements and submit a written rectification report to our bureau within 30 days from the date of receipt of this decision: 1. All directors, supervisors and senior managers of your company shall strengthen their study and training on securities laws and regulations, continuously improve their ability to perform their duties faithfully, diligently and carefully, and effectively improve the company's management and standardized operation level. 2. Your company should consolidate the financial accounting foundation, improve the level of accounting and financial management capabilities, conduct impairment tests on accounts receivable in strict accordance with accounting standards during the preparation of the 2023 financial report, and fully account for bad debt preparations.

The main content of the “Warning Letter”: After investigation, the company did not fully evaluate the signs of impairment of some accounts receivable in the previous year, resulting in insufficient and careless preparation of some of the company's accounts receivable. Our bureau has taken administrative supervision measures ordering the company to correct them (Administrative Supervision Measures Decision [2023] No. 281). Ji Hong, as the chairman of the company and Ji Gang as the company's financial director, bears the main responsibility for the above issues. According to the provisions of Article 51 (3) and Article 52 of the “Administrative Measures on Information Disclosure of Listed Companies” (Securities Regulatory Commission Order No. 182), our bureau decided to take supervisory measures against Ji Hong and Ji Gang by issuing warning letters.