ST Starts (603557.SH) received a warning letter from Zhejiang Securities Regulatory Bureau

Zhitong Finance App News, ST Startup (603557.SH) announced that the company recently received the “Decision on Measures to Issue a Warning Letter” ([2024] No. 244, “Warning Letter 1”) and “Decision on Measures to Issue a Warning Letter against Hong Kong Startup International Group Limited and Zhang Limin” ([2024] No. 243, abbreviated as “Warning Letter 2”) issued by the Zhejiang Regulatory Bureau of the China Securities Regulatory Commission.

The details of “Warning Letter 1”: Startup Co., Ltd., Chen Lihong, Sun Bing, Zhang Shengwang, Rao Congmei, Zhang Limin, Zhou Jianyong, Wu Jianjun, Chen Zhangwang: On August 28, 2024, the company disclosed the “2024 Semi-Annual Results Forecast Correction and Apology Notice”, which corrected the originally disclosed net profit for the 2024 semi-year period to a loss of 30 million yuan to a loss of 32 million yuan. The disclosure of information related to the company's performance forecast was inaccurate and untimely; the company's dealers, Kunming Biaohe Trading Co., Ltd., and Zhuzhou Qifu Trading Co., Ltd. were all companies actually controlled by Zhou Jianyong, the company's then-general manager, from 2019 to 2022, and were related parties to the company. The company failed to review and disclose related transactions with the above related parties in accordance with regulations; in September 2020, the company announced that the then controlling shareholder Hong Kong Start International Group Co., Ltd. (Hong Kong Start for short) signed the “Share Transfer Agreement for Starter Co., Ltd.” and announced subsequent progress from October 2020 to April 2022. After the above agreement was signed, Hong Kong Starter and the transferee of the agreement signed a separate “Cooperation Agreement”. The content and subsequent progress were inconsistent with the above announcement; in June 2020, the company used idle funds raised to temporarily supplement working capital in May 2020 for dividends, and the use of raised funds was irregular. In addition, the company also has cases where funds are mixed and used between different fund-raising projects due to mistakes made by the parties signing the contract. In summary, according to the provisions of Article 59 of the “Administrative Measures on Information Disclosure of Listed Companies” (CSRC Order No. 40) and Article 52 of the “Administrative Measures on Information Disclosure of Listed Companies” (CSRC Order No. 182), our bureau decided to take separate supervisory and administrative measures to issue warning letters against you and record them in the securities and futures market integrity file.

Details of “Warning Letter 2”: Hong Kong Starter International Group Limited, Zhang Limin: In September 2020, Hong Kong Starter International Group Limited (Hong Kong Starter) successively signed share transfer agreements such as the “Share Transfer Agreement for Starter Co., Ltd.” and “Cooperation Agreement”, which only notified and disclosed the “Share Transfer Agreement Concerning Starter Co., Ltd.” (ST Start for short), and announced further progress through ST Starter Limited (ST Start for short), and announced the subsequent progress of the agreement between October 2020 and April 2022 Inaccurate, incomplete, and untimely. According to the provisions of Article 59 of the “Administrative Measures on Information Disclosure of Listed Companies” (Securities Regulatory Commission Order No. 40) and Section 52 of the “Administrative Measures on Information Disclosure of Listed Companies” (CSRC Order No. 182), our bureau decided to take separate supervisory and administrative measures to issue warning letters against you and record them in the securities and futures market integrity file.