Yangzi New Materials was fined 4.5 million yuan, and its annual report contained major omissions and false records

Recently, the company received the "Administrative Penalty Decision" ([2023] No. 75) issued by the China Securities Regulatory Commission. The announcement pointed out that 1. There were major omissions in the annual report of Yangzi New Materials, including major omissions in the disclosure of information on capital occupation by related parties and major omissions in the disclosure of information on related procurement matters. In 2020, Yangzi New Material and its subsidiary Xinyongfeng had related transactions with Kaiyuan Metal of approximately 70,058,336.35 yuan, accounting for approximately 21.8% of the audited net assets that year. The above information was not disclosed in the 2020 annual report as required; General Manager Hu Weilin used multiple companies to occupy the funds of Yangzi New Material and its holding subsidiaries to engage in related transactions through overpayment of advance payments and other forms. 2. There are false records in the annual report of Yangzi New Materials. In 2020, Yangzi New Material sold galvanized coils produced by its subsidiary Xinyongfeng to Kaiyuan Metal and other companies, and then sold them back to Yangzi New Material directly or through a third party, forming a closed loop of transactions and inflating operating income. The China Securities Regulatory Commission required Yang Zi New Materials to order corrections, give a warning, and impose a fine of 4.5 million yuan; the second largest shareholder and then general manager Hu Weilin was given a warning and a fine of 5 million yuan; the then chairman Wang Gonghu was given a warning and a fine of 50 million yuan. A fine of 10,000 yuan was given; the then deputy general manager and financial director Qin Wei was given a warning and a fine of 500,000 yuan; the then chairman Sun Zhefeng was given a warning and a fine of 150,000 yuan was given; the then financial director Bao Jun was given a warning and a fine of 150,000 yuan was imposed.