ST Jin Yis prepenalty has been implemented with investor rights protection solicitation in progress

Radar Finance assisted in the production of the article|Compiled by Wu Mo|Deep Sea
On June 5th, *ST Jin Yi issued an announcement regarding the receipt of the administrative penalty pre-notification letter from the Beijing Regulatory Bureau of the China Securities Regulatory Commission.
On June 4, 2024, the company received Administrative Penalty Pre-Notification Letter No. 6 of 2024 from the Beijing Regulatory Bureau of the China Securities Regulatory Commission.
It was found that *ST Jin Yi was suspected of the following illegal acts: In 2020 and 2021, *ST Jin Yi’s inventory impairment was insufficient, leading to an overstatement of inventory by 610 million yuan in 2020, accounting for 5.92% of the total assets at the end of the period, and an overstatement of profit by 610 million yuan, accounting for 21.21% of the total profit for the period; in 2021, an overstatement of inventory by 637 million yuan, accounting for 7.03% of the total assets at the end of the period, and an overstatement of profit by 2.8 million yuan, accounting for 1.89% of the total profit for the period. The above issues led to misstatements in *ST Jin Yi’s financial reports for 2020 and 2021.
On April 30, 2023, *ST Jin Yi issued an announcement titled “Announcement on Correction of Previous Accounting Errors and Retrospective Adjustments,” voluntarily making retrospective adjustments to the relevant financial data in the 2020 and 2021 annual reports.
The above illegal facts are supported by evidence such as relevant announcements, meeting documents, inquiry transcripts, and explanations. The Beijing Regulatory Bureau believes that the actions of *ST Jin Yi mentioned above are suspected of violating Article 78, paragraph 2 of the Securities Law of the People’s Republic of China, constituting illegal acts as described in Article 197, paragraph 2 of the Securities Law.
Based on the facts, nature, circumstances, and degree of social harm of the illegal acts, in accordance with Article 197, paragraph 2 of the Securities Law, the Beijing Regulatory Bureau intends to make the following decisions: 1. Issue a warning to *ST Jin Yi and impose a fine of 1.5 million yuan; 2. Issue a warning to Wang Xiaofeng and impose a fine of 700,000 yuan; 3. Issue a warning to Wang Xiaodan and impose a fine of 700,000 yuan; 4. Issue a warning to Liu Dandan and impose a fine of 600,000 yuan; 5. Issue a warning to Jiang Xuefu and impose a fine of 600,000 yuan.
In response, Zhang Yanwei, Director of Shanghai Renying Law Firm, told Radar Finance that investors who have suffered losses due to misconduct by listed companies can claim compensation in accordance with the law. Investors who held *ST Jin Yi shares as of the closing on March 29 can sign up for free compensation through the official account “RadarAssist” (Radar code: 88). No fees are required before receiving compensation.
According to Tianyancha, *ST Jin Yi has invested in a total of 13 external companies and has 400 pieces of trademark information in terms of intellectual property.