Financial Services Association, January 10 (Reporter Lu Tingting) This evening, the New Asia Manufacturing (002388.SZ) announcement revealed that the company and the original actual controller Xu Qi were sued by the Securities Regulatory Commission for allegedly breaking the law and regulations on credit disclosure. On the same day, we received a decision on administrative supervision measures from the Zhejiang Securities Regulatory Bureau and a letter of concern from the Shenzhen Stock Exchange.

According to the “Notice of Case Filing”, the Securities Regulatory Commission decided to file a case against the company and Xu Qi due to alleged illegal information disclosure violations.

On the same day, the Zhejiang Securities Regulatory Bureau issued a warning letter to the company's former controlling shareholder (current shareholder holding 5% or more of the shares), Xu Qi, the former actual controller, and relevant personnel, and included them in the securities and futures market integrity file; administrative supervision measures were ordered to revise the new Asian process. The relevant announcement mentioned that after investigation, Xinlida Group and Xu Qi had irregularities such as the use of funds and failure to promptly fulfill their obligation to disclose information. Xinya Manufacturing and related personnel such as Wang Weihua, Chen Duojia, Wu Na, Xu Leiyu, Hu Dafu, and Hu Dan have problems such as failure to promptly fulfill information disclosure obligations on capital use matters, inaccurate calculation of bad debt preparation for accounts receivable, improper revenue confirmation methods for some main businesses, inaccurate disclosure of some information in the 2022 annual report, and inaccurate disclosure of share pledge information from the original controlling shareholder.

The Shenzhen Stock Exchange also sent a letter of concern on the above matters, stating that it will later initiate disciplinary proceedings against the company and those responsible in accordance with the relevant provisions of the China Securities Regulatory Commission's “Stock Listing Rules” based on the investigation results of the China Securities Regulatory Commission.

Zhang Wei, a lawyer at Shanghai Xinyi Law Firm, told the Financial Federation reporter that the New Asia Process was filed by the Securities Regulatory Commission due to suspected information disclosure violations. The company and other responsible persons may face punishment by the Securities Regulatory Commission and disciplinary action by the exchange, and may also face shareholder rights protection later. During the filing of the case, the company was also not allowed to publicly issue securities, non-publicly issue shares, or issue preferred shares.