Huayi Electric (600290.SH) and related personnel received a warning letter from Zhejiang Regulatory Bureau for violations of information disclosure regulations.

Huayi Electric (600290.SH) announced that on September 7, 2023, it received an "Administrative Supervision Measures Decision" (No. [2023] 141) from the Zhejiang Regulatory Bureau of the China Securities Regulatory Commission (hereinafter referred to as the "Zhejiang Regulatory Bureau"). The Zhejiang Regulatory Bureau has decided to issue a warning letter to the company, the former chairman, former general manager, former CFO, and the former secretary of the board of directors. It is reported that during on-site inspections and daily supervision, the Zhejiang Regulatory Bureau found the following issues with the company: firstly, in 2017, the recognition of a portion of wind turbine sales revenue did not comply with the provisions of the enterprise accounting standards, and the disclosure of accounts receivable from some customers was inaccurate; secondly, the provision for bad debts of accounts receivable from 2018 to 2022 was not accurately accounted for; thirdly, the company failed to timely disclose the situation of debt overdue; fourthly, the company failed to timely disclose the progress of litigation cases. The company's aforementioned actions violate Article 2 of the "Management Measures for the Disclosure of Information of Listed Companies" (CSRC Order No. 40) and Article 3 of the "Management Measures for the Disclosure of Information of Listed Companies" (CSRC Order No. 182). Former Chairman and General Manager Chen Menglie, former CFO Li Weilong, and former General Manager Zhang Xuemin violated Article 3 and Article 58 of the "Management Measures for the Disclosure of Information of Listed Companies" (CSRC Order No. 40). Former Chairman and Acting Secretary of the Board Chen Jianshan, General Manager Sun Huijie, and former Acting Secretary of the Board Cui Zijian violated Article 4 and Article 51 of the "Management Measures for the Disclosure of Information of Listed Companies" (CSRC Order No. 182), and bear the primary responsibility for the corresponding violations.