Guang Dong Sitong Group (603838.SH) and relevant responsible persons received a warning letter from the Guangdong Securities Regulatory Bureau.

Guang Dong Sitong Group (603838.SH) announced that the company recently received the "Decision on Taking Order to Correct Measures Against Guangdong Sitong Group Co., Ltd. and Taking Measures of Issuing Warning Letters Against Deng Jianhua, Cai Zhentong, and Zhang Ping" issued by the Guangdong Regulatory Bureau of the China Securities Regulatory Commission. Upon investigation, the company has the following problems: 1. Inaccurate revenue accounting. The company's 2025 first-quarter report, semi-annual report, and third-quarter report incorrectly included certain transactions in operating revenue, resulting in significant discrepancies between the 2025 first-quarter, semi-annual, and third-quarter data and the actual situation, and the relevant reports were inaccurately disclosed. The above circumstances do not comply with the provisions of Article 3, Paragraph 1 of the "Measures for the Administration of Information Disclosure by Listed Companies" (CSRC Order No. 182 and CSRC Order No. 226, the same below). The company adjusted the relevant financial data when disclosing the 2025 annual report. 2. Inaccurate recognition of asset impairment losses. In 2025, the company sold sanitary ceramic display pile products to multiple individual natural person customers, and the losses incurred differed significantly from the inventory impairment provisions the company had made for the relevant goods before sale. When previously measuring inventory impairment losses, the company did not fully consider that the net realizable value of such inventory was significantly lower than its book value, resulting in insufficient provision for asset impairment losses, which does not comply with the provisions of Articles 15 and 16 of "Accounting Standard for Business Enterprises No. 1 - Inventories," resulting in inaccurate data disclosed in the relevant annual report and violating the provisions of Article 3, Paragraph 1 of the "Measures for the Administration of Information Disclosure by Listed Companies." Deng Jianhua, chairman of the company, Cai Zhentong, general manager, and Zhang Ping, chief financial officer, failed to fulfill their duties of diligence and due care in accordance with Article 4 of the "Measures for the Administration of Information Disclosure by Listed Companies," and bear primary responsibility for the company's relevant violations. In accordance with Article 52, Paragraph 3 of the "Measures for the Administration of Information Disclosure by Listed Companies," the Guangdong Securities Regulatory Bureau decided to take administrative regulatory measures of ordering the company to correct, and to take administrative regulatory measures of issuing warning letters against Deng Jianhua, Cai Zhentong, and Zhang Ping.