According to the announcement from *ST Kingee Culture (002721.SZ), on June 7, 2024, the company received the "Administrative Penalty Decision" (No.[2024] 8) issued by the Beijing Regulatory Bureau of the China Securities Regulatory Commission. The details are as follows:

It was found that Kingee Culture violated the regulations in the following ways: In 2020 and 2021, the inventory depreciation of Kingee Culture was insufficient, resulting in a virtual increase in inventory of RMB 610 million and RMB 637 million respectively, which accounted for 5.92% and 7.03% of the total assets at the end of the period, and virtual increase in total profit of RMB 610 million and RMB 28 million respectively, accounting for 21.21% and 1.89% of the total profit in the corresponding period. The above issues resulted in wrong reporting in Kingee Culture's annual reports in 2020 and 2021. On April 30, 2023, Kingee Culture released an announcement on the retrospective adjustment of the financial data in the annual reports for 2020 and 2021. The above illegal facts have been proved by relevant announcements, meeting documents, inquiry transcripts, and statements of the facts, providing sufficient evidence to establish the violation.

The above behavior of Kingee Culture violates the provisions of Article 78, Paragraph 2 of the Securities Law and constitutes illegal behavior described in Article 197, Paragraph 2 of the Securities Law. Wang Xiaofeng, the former chairman of Kingee Culture, Wang Xiaodan, the former director and general manager, Liu Dandan, the former CFO, and Jiang Xuefu, the former CFO of Kingee Culture, signed written confirmation opinions and guaranteed that the content of the annual reports disclosed in 2020 and 2021 was true, accurate, and complete. They failed to fulfill their duty of diligence, and are the directly responsible managers for the company's illegal information disclosure behavior, as specified in Article 82, Paragraph 3 of the Securities Law, Article 58, Paragraph 3 of the "Measures for the Administration of Information Disclosure of Listed Companies" (CSRC Order No. 40), and Article 51, Paragraph 3 of the "Measures for the Administration of Information Disclosure of Listed Companies" (CSRC Order No. 182).

Based on the facts, nature, circumstances and social harm of the illegal behavior of the parties concerned, pursuant to the provisions of Article 197, Paragraph 2 of the Securities Law, we have decided: 1. To issue a warning to Beijing Kingee Culture Development Co., Ltd. and impose a fine of RMB 1.5 million; 2. To give a warning to Wang Xiaofeng and impose a fine of RMB 700,000; 3. To give a warning to Wang Xiaodan and impose a fine of RMB 700,000; 4. To give a warning to Liu Dandan and impose a fine of RMB 600,000; 5. To give a warning to Jiang Xuefu and impose a fine of RMB 600,000.