Jintaiyang and Its Executives Receive Warning Letters, Rights Protection Campaign Launched

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（Source: Caowen）

Guangdong Securities Regulatory Bureau believes that Jintaiyang has the following issues: inaccurate accounts receivable accounting, insufficient bad debt provisions; actual controllers occupying non-operational funds; some related-party transactions not reviewed and disclosed in a timely manner; improper management of insider information.

Recently, Dongguan Jintaiyang Grinding Co., Ltd. (Jintaiyang (300606.SZ)) issued a notice disclosing that the company recently received the “Decision on Issuance of Warning Letter to Dongguan Jintaiyang Grinding Co., Ltd., Yang Lu, Hu Xiuying, Yang Wei, Zhu Yuanji, Du Yanyan” from the Guangdong Regulatory Bureau of the China Securities Regulatory Commission (hereinafter referred to as “Guangdong CSRC”) (〔2026〕2号) (hereinafter referred to as the “Warning Letter”).

The Warning Letter shows that, according to the “Rules for On-Site Inspection of Listed Companies” (CSRC Announcement [2022] No. 21) and other regulations, Guangdong CSRC conducted an on-site inspection of Dongguan Jintaiyang Grinding Co., Ltd., and found the following issues:

1. Inaccurate accounts receivable accounting, insufficient bad debt provisions

The company’s customer, Chongqing Tongnan Tongding Electronic Technology Co., Ltd. (hereinafter “Chongqing Tongding”), has multiple related payments with Jintaiyang. First, some of the funds received in April 2023 came from Jintaiyang; second, from June to September 2023, the funds mainly came from financing leases obtained under Jintaiyang’s guarantee; third, in April 2024, the source of Chongqing Tongding’s financing lease repayment funds is closely related to the actual controller of Jintaiyang. The above related funds reflect that the risk of the relevant accounts receivable is still mainly borne by Jintaiyang. The company’s termination of recognition of these receivables and failure to make bad debt provisions do not comply with Articles 7 and 17 of “Financial Asset Transfer” No. 23 of the Enterprise Accounting Standards, resulting in inaccurate financial data disclosed in the 2023 annual report and violating Article 3, Paragraph 1 of the “Administrative Measures for Information Disclosure of Listed Companies” (CSRC Order No. 182).

2. Actual controllers occupying non-operational funds

Between 2020 and 2021, Jintaiyang transferred funds from the company’s account to suppliers under the prepayment name, with 19 million yuan (9 million in 2020 and 10 million in 2021) passing through accounts controlled by relatives of the actual controller, ultimately used to repay loans pledged by the actual controllers Yang Lu and Hu Xiuying. This constitutes occupation of non-operational funds by the actual controllers and was not reviewed or disclosed as required. This does not comply with the provisions of the “Notice on Regulating Fund Transactions Between Listed Companies and Related Parties and External Guarantees” (CSRC Announcement [2017] No. 16, revised), Article 1, Paragraph 2, Item 5, and violates Articles 3, Paragraph 1, and 41 of the “Measures for the Administration of Information Disclosure of Listed Companies.”

3. Some related-party transactions not reviewed and disclosed in a timely manner

First, the company’s customer, Kaifeng Liyan Polishing Materials Co., Ltd. (hereinafter “Kaifeng Liyan”), mainly sourced operating funds from prepayments from Jintaiyang during 2022 and 2023, with large fund exchanges between employees and Jintaiyang, and personnel mingling, which should be considered related-party transactions. These transactions were not reviewed or disclosed timely. The total procurement from Jintaiyang in 2022 and 2023 was 27.5051 million yuan and 10.3848 million yuan, respectively, accounting for 4.59% and 1.48% of the respective year’s net assets. Second, Liu Chun, general manager of Jintaiyang’s subsidiary, has served as executive director and manager of Foshan Ruiyan Abrasives Co., Ltd. (hereinafter “Foshan Ruiyan”) since November 2021. Jintaiyang recognized this customer as a related party in 2023, but in 2022, when the control relationship had not changed, it was not classified as a related party. The related transactions were not reviewed or disclosed timely. In 2022, Jintaiyang’s sales to Foshan Ruiyan amounted to 28.8519 million yuan, accounting for 4.82% of the year’s net assets. These situations violate Articles 3, Paragraph 1, and 41 of the “Measures for the Administration of Information Disclosure of Listed Companies.”

4. Improper management of insider information

First, in the 2021 annual report, the date of knowledge of the matter by the audit personnel and financial responsible persons was later than the actual date of knowledge, with inaccurate registration. Second, in the insider information knowledge files for 2021 and 2022, relevant personnel did not sign to confirm. These do not comply with Article 6, Paragraph 1 of the “Guidelines for the Supervision of Listed Companies No. 5—Management System for Insider List of Listed Companies” (CSRC Announcement [2022] No. 17).

Yang Lu, as the company’s actual controller, chairman, and general manager; Hu Xiuying, as the company’s actual controller; Yang Wei, as director and deputy general manager handling related transactions; Zhu Yuanji, then CFO; and Du Yanyan, secretary of the board, failed to perform diligent and responsible duties in accordance with the “Measures for the Administration of Information Disclosure of Listed Companies” and the “Guidelines for the Supervision of Listed Companies No. 5—Management System for Insider List,” and are mainly responsible for the above violations. Among them, Yang Lu bears primary responsibility for all violations; Hu Xiuying bears primary responsibility for the second violation; Yang Wei bears primary responsibility for the first, second, and third violations; Zhu Yuanji bears primary responsibility for the first, second, and third violations; Du Yanyan bears primary responsibility for the second, third, and fourth violations. According to Articles 52 of the “Measures for the Administration of Information Disclosure of Listed Companies” and 16 of the “Guidelines for the Supervision of Listed Companies No. 5—Management System for Insider List,” Guangdong CSRC has decided to issue warning letters to Jintaiyang, Yang Lu, Hu Xiuying, Yang Wei, Zhu Yuanji, and Du Yanyan as administrative regulatory measures.

Claims and rights protection collection officially begins:

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The platform’s rights protection lawyers believe that the rights protection collection period for Jintaiyang (300606.SZ) is:

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