Zhitong Financial App News, 688619.SH) issued a notice, the company received the China Securities Regulatory Commission issued a "case notice" (serial number: CSRC filing word 0282023004) on May 17, 2023, because the company is suspected of information disclosure violations, according to the "people's Republic of China Securities Law", "people's Republic of China Administrative punishment Law" and other laws and regulations, the China Securities Regulatory Commission decided to file a case for investigation. The company received the advance notice of Administrative penalty issued by Xiamen Regulatory Administration of China Securities Regulatory Commission on August 25, 2023 (penalty [2023] No. 1). The company recently received the Administrative penalty decision ([2023] No. 1, [2023] No. 2, [2023] No. 3) issued by Xiamen Regulatory Administration of China Securities Regulatory Commission.

In December 2020, Lopter signed three supply agreements with customers for three projects in Jinxi County, Fuzhou City, Jiangxi Province, Duyun City, Guizhou Province, and Xiangshui County, Yancheng City, Jiangsu Province, with a total contract amount of 241763705.71 yuan. In 2021, Lopter and its wholly-owned subsidiary Lopter Systems Integration Co., Ltd. signed three supply agreements with customers for 6 projects in Xiangshui County, Yancheng City, Jiangsu Province and Duyun City, Guizhou Province, with a total contract amount of 148731742.96 yuan. In 2020 and 2021, Lopter recognized the revenue of the above-mentioned projects based on the time of delivery and customer acceptance. In fact, control of the goods was not transferred to customers when Lopter recognized revenue. At the same time, in addition to delivering related goods in accordance with the supply agreement, Lopter must also provide supporting services such as project design, organization of project construction, equipment installation and commissioning.

In 2020 and 2021, Lopter falsely increased the revenue of the above projects by 213950182.01 yuan in 2020, accounting for 34.65% of the amount disclosed in the current period, and the total profit in 2020 was 146115311.45 yuan, accounting for 81.21% of the amount disclosed in the current period; the operating income in 2021 was 111729560.55 yuan, accounting for 15.42% of the amount disclosed in the current period, and the total profit in 2021 was 20747357.66 yuan, accounting for 20.41% of the amount disclosed in the current period. The total profit in 2022 was falsely reduced by 73100883.73 yuan, accounting for 30.84% of the absolute value of the disclosed amount in the current period. On June 20, 2023, Lopter issued the announcement on the Correction and retroactive Adjustment of previous Accounting errors, in accordance with the company's "Social Security system solution sales" model, that is, taking the time point of the project end-customer acceptance report as the time point of revenue recognition, the periodic financial statement data related to the above projects have been corrected.

Lopter's above-mentioned acts violate the provisions of paragraph 2 of Article 78 of the Securities Law and constitute a false record of the disclosed information mentioned in paragraph 2 of Article 197 of the Securities Law.

According to the facts, nature, circumstances and the degree of social harm of the illegal acts committed by the parties, and in accordance with the provisions of paragraph 2 of Article 197 of the Securities Law, the Xiamen Regulatory Administration decided: 1. Lopter was ordered to correct, given a warning and fined 4 million yuan. Chen Yanxing and Jiang Wentao were given a warning and fined 3 million yuan respectively. Chen Bizhu was given a warning and fined 2 million yuan. Yu Limei was given a warning and fined 1.5 million yuan. Zhang Xiang and Liu Yuan were given a warning and fined 500000 yuan respectively. Lin Xiaoyue and Chen Kui were given a warning and fined 500000 yuan respectively. Cuili was given a warning and fined 500000 yuan.