Zhengping Road & Bridge Construction (603843.SH) received a warning letter from the Qinghai Securities Regulatory Bureau due to associated non-operational use of listed company funds, among other reasons.

Announcement by Zhengping Road & Bridge Construction (603843.SH): On September 6, 2023, the company received the Administrative Supervision Measures Decision from the Qinghai Regulatory Bureau of the China Securities Regulatory Commission, titled "Decision on Issuing Warning Letters to Zhengping Road & Bridge Construction Co., Ltd. and Relevant Personnel," coded as Qing Jian Measures [2023] No.2 ("Warning Letter"). The relevant details are hereby announced: Zhengping Road & Bridge Construction Co., Ltd., Jin Shengguang, Jin Shenghui, Wang Liying, Ma Futai: After investigation, our bureau found the following violations by Zhengping Road & Bridge Construction (hereinafter referred to as the Company): (1)Non-operational use of funds by related parties. In the fiscal year 2021, Zhengping Road & Bridge Construction borrowed a total of 62.2 million yuan from the controlling shareholder's related party, Qinghai Jinyangguang Investment Group Co., Ltd., through prepayment of supplier project payments and material payments. As of December 31, 2022, the aforementioned funds and interest have been fully repaid. Zhengping Road & Bridge Construction failed to follow the approval procedures for the aforementioned related party fund occupation, nor did it fulfill its disclosure obligations as required. The above situation violates the provisions of Article 3 of the "Measures for the Management of Information Disclosure by Listed Companies" (CSRC Order No. 182) and Article 5 of the "Regulatory Guidelines for Listed Companies No. 8 - Regulation on the Fund Flow and External Guarantees of Listed Companies" (CSRC Announcement [2022] No. 26). (2) Inaccurate accounting. The accounting basis for some of Zhengping Road & Bridge Construction's construction projects is not standardized or sufficient, resulting in differences between the accounting progress and the actual situation, failing to truly reflect the company's financial condition and business performance in the company's 2021 annual report, 2022 quarterly report, half-year report, and third-quarter report. The above situation does not comply with the provisions of Article 4 of "Accounting Standards for Enterprises No. 14 - Revenue". The financial data in the company's 2021 annual report, 2022 quarterly report, half-year report, and third-quarter report are inaccurate, violating the provisions of Article 3 of the "Measures for the Management of Information Disclosure by Listed Companies". Jin Shengguang, as the Chairman of the company and the former CEO, Jin Shenghui, as the Vice Chairman of the company, Wang Liying, as the CFO and Vice President of the company, and Ma Fuxin, as the Secretary of the Board and Vice President of the company, bear primary responsibility for the above violations. In accordance with Article 51 and Article 52 of the "Measures for the Management of Information Disclosure by Listed Companies" and Article 23 of the "Regulatory Guidelines for Listed Companies No. 8 - Regulation on the Fund Flow and External Guarantees of Listed Companies" (CSRC Announcement [2022] No. 26), our bureau has decided to issue warning letters as administrative supervisory measures to Zhengping Road & Bridge Construction, Jin Shengguang, Jin Shenghui, Wang Liying, and Ma Fuxin, and record them in the integrity files of the securities and futures markets.