Jinyuan EP Co., Ltd. (000546.SZ): Zhao Hui and Fang Guangquan received a warning letter from Jilin Securities Regulatory Bureau.

Jinyuan EP Co., Ltd. (000546.SZ) announced that on January 10, 2025, the relevant parties of the company received the decision issued by the Jilin Regulatory Bureau of the China Securities Regulatory Commission regarding the issuance of a warning letter to Zhao Hui and Fang Guangquan. The document points out that from October to December 2023, Zhao Hui organized, planned, and arranged for Fang Guangquan and others to transfer funds, in the name of paying off debts, to transfer 406.6 million yuan from Jinyuan EP Co., Ltd. to a supplier, accounting for 8.36% of the audited net assets of Jinyuan EP Co., Ltd. at that time. Ultimately, the above-mentioned funds flowed into the controlling shareholder of Jinyuan EP Co., Ltd., Jinyuan Holdings Group Co., Ltd. (referred to as Jinyuan Holdings), to repay the debts owed by Jinyuan Holdings to Jinyuan EP Co., Ltd. These actions constituted the non-business use of funds of Jinyuan EP Co., Ltd., and Jinyuan EP Co., Ltd. did not disclose the relevant information in a timely manner until April 19, 2024, through an interim report, failing to fulfill its disclosure obligations in accordance with the law. The above-mentioned actions of Zhao Hui, the actual controlling shareholder of Jinyuan EP Co., Ltd., and the then chairman and general manager, and Fang Guangquan, the financial officer and secretary of the board of directors, violated Article 4 of the "Measures for the Administration of Information Disclosure by Listed Companies" (CSRC Order No. 182), as well as the provisions of Article 3 and Article 5 of the "Regulatory Requirements for the Fund Transactions and External Guarantees of Listed Companies" (CSRC Announcement [2022] No. 26).