According to the Zhitong Finance APP, ST Smart Knowledge (603869.SH) announced that on November 25, 2024, the company received the 'Administrative Penalty Prior Notice' (Guilin Punishment Word [2024] No. 2) issued by the China Securities Regulatory Commission. Upon investigation, it was found that Enc Digital Technology was suspected of illegal facts as follows: The annual reports for 2019, 2020, and 2021 contained false records.

During the investigation, related directors and senior management personnel of Enc Digital Technology were suspected of violating Article 82, paragraph 3 of the Securities Law, constituting the 'direct responsible personnel and other directly responsible personnel' as described in Article 197, paragraph 2 of the Securities Law. Zhang Yadong served as director and chairman of Enc Digital Technology from September 2019 to April 2022; Zhang Yanfeng served as vice president, board secretary, and chief financial officer from December 2018; Yang Rui served as president and director from June 2018 to May 2021; Xie Xin served as vice president from September 2018 to April 2022; Wang Xi served as executive vice president, director, and audit committee member from July 2019.

Zhang Tao served as a director of Enc Digital Technology from December 2016 to March 2020, and did not sign the above three annual reports. From June 2010 to August 2022, he served successively as the executive director, chairman, and director of Enc Digital Technology Data Services Co., Ltd. Zhang Tao organized and implemented the aforementioned false business, and his actions had a direct causal relationship with the illegal information disclosure of Enc Digital Technology's annual reports, making him another directly responsible personnel for the illegal disclosures in the 2019, 2020, and 2021 annual reports.

Based on the facts, nature, circumstances, and social harm of the individual's illegal acts, in accordance with Article 197, paragraph 2 of the Securities Law, the China Securities Regulatory Commission intends to decide: 1. to order Enc Digital Technology Co., Ltd. to rectify, give a warning, and impose a fine of 8.5 million yuan; 2. to give Zhang Yadong a warning and impose a fine of 4.3 million yuan; 3. to give Zhang Yanfeng and Zhang Tao warnings and impose fines of 3.2 million yuan each; 4. to give Yang Rui and Xie Xin warnings and impose fines of 2.1 million yuan each; 5. to give Wang Xi a warning and impose a fine of 1.5 million yuan. Zhang Yadong will face a 6-year ban from the securities market, while Zhang Tao and Zhang Yanfeng will each face a 3-year ban.