Gelonghui, December 24, Zhaolong Internet (300913.SZ) announced that during an internal self-inspection, the company discovered that sales personnel were suspected of encroaching on their positions, so the case was reported to the public security authorities at the end of February 2024, and the public security authorities took coercive measures. After discovering this matter, the company attached great importance to it, actively cooperated with the public security authorities in the investigation and evidence collection, and immediately carried out key internal inspections and rectification. Investigations have revealed that sales personnel are suspected of using the convenience of their positions to encroach on part of the company's sales resources, use the company's trade secrets in violation of regulations, etc., and infringe on the company's interests. As of the disclosure date of this announcement, the company has received a refund of RMB 38.2 million. Meanwhile, the public security authorities are further investigating the case where the relevant sales personnel are suspected of seizing their positions.

Although this case is an act of encroachment on individual positions, it also shows that personnel in relevant positions are not very aware of risk, and that there are certain flaws in the company's relevant internal controls. After discovering this matter, the company immediately inspected and rectified key aspects such as business process control and execution, and comprehensively sorted out and checked the effectiveness of the implementation of relevant internal control systems, carefully summarized and analyzed, formulated and implemented rectification plans, and strengthened preventive measures to prevent such incidents from happening again.