According to the Securities Law, the Measures for On-site Inspection of Listed Companies (CSRC Announcement '2010'12), the Guangdong Regulatory Authority conducted an on-site inspection of Mulinsen from May 7 to May 18, 2018. After investigation, Mulinsen has the following violations:
First, some of the daily connected transactions did not fulfill the review procedures and disclosure obligations in a timely manner
(1) The daily connected transactions with the related parties to develop the crystal failed to fulfill the review procedures and disclosure obligations in a timely manner , Development Crystal Lighting (Xiamen) Co., Ltd. (hereinafter referred to as 'Development Crystal') has become a related company of Mulinsen since July 2016. From July to December 2016, Mu Linsen purchased products for the purchase of crystals totaling RMB 0.24 billion. 1.41 billion yuan, accounting for 0.96% and 5.61% of Mulinsen's audited net assets at the end of 2015. At the time of the above-mentioned related party transactions, Mulinsen did not perform the review procedures and disclosure obligations in time according to relevant regulations until April 20, 2017. The board of directors supplemented and disclosed the above related transactions, and held a general meeting of shareholders on June 15, 2017 for supplementary confirmation.
In 2017, when Mulinsen sold the amount of goods to the development of the company beyond the authorized amount of the Mulinsen shareholders meeting (exceeding the amount of 113 million yuan, accounting for 2.15% of Mulinsen’s audited net assets at the end of 2016), the review process was not carried out in accordance with the relevant rules. Disclosure obligations, until March 14, 2018, the board of directors convened a supplementary confirmation and disclosure of the above related transactions.
Mulinsen’s above actions are inconsistent with Article 2 of the Measures for the Administration of Information Disclosure of Listed Companies, Article 30, Article 48, “Shenzhen Stock Exchange Listing Rules”, 10.2.4, 10.2.11 and Articles of Association The provisions of Article 111.
(II) The day-to-day related transactions with related parties GVL did not fulfill the review procedures and disclosure obligations in a timely manner G1obal Value Lighting, LLC (hereinafter referred to as GVL) has become a Mulberry forest affiliate since March 2017. In 2017, Mulinsen sold goods to GVL totaling RMB 75 million, accounting for 1.43% of the company's audited net assets at the end of 2016. At the time of the transaction, Mulinsen did not perform the review procedures and disclosure obligations in accordance with the relevant regulations. Until March 14, 2018, the board of directors was convened to supplement and disclose the above related transactions.
Mulinsen’s above actions are inconsistent with Article 2 of the Measures for the Administration of Information Disclosure of Listed Companies, Article 30, Article 48, “Shenzhen Stock Exchange Listing Rules”, 10.2.4, 10.2.11 and Articles of Association The provisions of Article 111.
Second, the disclosure of wealth management products is inaccurate and incomplete.
(1) Temporary announcements that the disclosure of wealth management products is inaccurate and incomplete. Mu Linsen's “Announcement on the Use of Self-owned Funds to Purchase Guaranteed Short-Term Financial Products in 2018” disclosed on March 5, 2018 is inaccurate and incomplete, as follows:
(1) As of December 31, 2017, the outstanding balance of the entrusted wealth management products disclosed in the above announcement was 761.164 million yuan less than the actual amount. The accumulated amount of entrusted wealth management within 12 months after disclosure was 174.172 million yuan less than the actual total amount. The above difference accounted for 13.03% and 2.96% of Mulinsen's audited net assets at the end of 2017, respectively.
(2) When the above announcement disclosed 'the use of self-owned funds to purchase wealth management products within 12 months before the date of this announcement', it listed less than 9 wealth management products of the parent company and 66 wealth management products of the subsidiaries, with a total amount of 2,216,810,100 yuan. During the statistical period, the company purchased 52.10% of the total amount of wealth management products.
The above acts are not in compliance with the provisions of Article 2 of the Measures for the Administration of Information Disclosure of Listed Companies, Article 33.
(2) Regular reporting of incomplete disclosure of wealth management products , Linsen Linsen subsidiary Jiangxi Optoelectronics Technology Co., Ltd. in November 2016 the amount of bought 2 pens were 10,600 million, 40,000 million guaranteed floating financial products to Ping An Bank, the above financial products expire in February 2018.
Although Mulinsen's 2016 annual report disclosed the above-mentioned wealth management products, in the 2017 annual report '17, the timely performance of major contracts', when the individual wealth management products with significant single amount were disclosed, the above-mentioned unexpired 2 was not disclosed. Pen wealth management products, the two wealth management products accounted for 8.61% of Mulinsen's 2017 audited net assets.
The above acts are not in accordance with Article 2 of the Measures for the Administration of Information Disclosure of Listed Companies, and the Contents and Formats of the Report on the Contents and Formats of Information Disclosure of Companies Offering Public Offerings No. 2, the Annual Report of Article 41 (3) Provisions.
According to the provisions of Article 59 of the Measures for the Administration of Information Disclosure of Listed Companies, the bureau decided to adopt an administrative supervision measure to issue a warning letter to Mulinsen.