According to the Zhitong Finance APP, Xidiwei (688173.SH) announced that the company and relevant personnel recently received the "Decision on Issuing Warning Letters to Xidiwei Electronic Group Co., Ltd., Tao Hai, NAM DAVID INGYUN, and Tang Ya" issued by the Guangdong Regulatory Bureau of China Securities Regulatory Commission (referred to as "Guangdong Securities Regulatory Bureau"). The relevant situation is announced as follows:

"Xidiwei Electronic Group Co., Ltd., Tao Hai, NAM DAVID INGYUN, and Tang Ya: According to the provisions of the 'Rules for On-site Inspection of Listed Companies' (CSRC Announcement [2022] No. 21) and others, our bureau recently conducted an on-site inspection of Xidiwei Electronic Group Co., Ltd. (hereinafter referred to as Xidiwei or the company) and found the following issues:

1. Inaccurate information disclosure: On February 26, 2024, Xidiwei disclosed the 'Announcement on the Correction of Previous Accounting Errors and the Correction of Regular Reports.' The company adjusted the revenue accounting method for the newly added product line of voice coil motor driver chips from the gross method to the net method, hence correcting the accounting errors in the semi-annual report and third quarterly report of 2023. The revenue, cost of goods sold, and other account calculations in the 2023 semi-annual report and third quarterly report before the adjustments were inaccurate, violating the provisions of Article 3, Paragraph 1 of the 'Administrative Measures for Information Disclosure of Listed Companies' (CSRC Order No. 182). 2. Non-compliant use of raised funds: In April 2023, Xidiwei disclosed that the Board of Directors reviewed and approved the 'Proposal for Increasing Capital to Wholly-owned Subsidiary,' deciding to increase capital to its wholly-owned subsidiary Halo Microelectronics (Hong Kong) Co., Ltd. (hereinafter referred to as Hong Kong Xidiwei) with its own funds of 30 million USD. Due to a work error, on December 15, 2023, and February 28, 2024, the company transferred 35.548 million yuan and 72.11 million yuan respectively from the over-raised funds special account to the Hong Kong Xidiwei account. The abovementioned situation does not comply with Article 32 of the 'Administrative Measures for Continuous Supervision of Listed Companies on the Star Market (Trial)' (CSRC Order No. 154) and Article 4 of the 'Guidelines for Regulation No. 2 on the Management and Use of Raised Funds by Listed Companies' (CSRC Announcement [2022] No. 15). Xidiwei has returned all funds of 107.658 million yuan and interest of 1.0884 million yuan generated during the period to the special account for over-raised funds via its own funds account on April 12 and April 18, 2024.

According to the provisions of Article 51, Paragraph 3, and Article 52 of the 'Administrative Measures for Information Disclosure of Listed Companies,' our bureau decided to impose administrative regulatory measures by issuing warning letters to Xidiwei, Tao Hai, NAM DAVID INGYUN, and Tang Ya. The company and relevant personnel should seriously learn from the lessons, effectively strengthen the study of securities laws and regulations, and fulfill their information disclosure obligations honestly, accurately, completely, timely, and fairly according to the law. Meanwhile, the company should hold the responsible personnel accountable internally and report the rectification report and internal accountability situation to our bureau within 30 days upon receiving this decision, and also send a copy to the Shanghai Stock Exchange.