P.2020-065 Announcement of Tongfeng Electronics on the receipt of the Decision of Administrative supervision Measures of Anhui Regulatory Bureau of China Securities Regulatory Commission

Release time:2021-01-26Reading times:9812

Securities code: 600237 Securities abbreviation: Tongfeng Electronic Number: Lin 2020-065

 

Announcement of Anhui Tongfeng Electronic Co., Ltd. on receiving the Decision of Administrative supervision Measures of Anhui Regulatory Bureau of China Securities Regulatory Commission

 

The board of directors and all the directors of the Company warrant that there is no false record, misleading statement or material omission in the content of this announcement, and bear individual and joint liability for the authenticity, accuracy and completeness of the content.

 

Anhui Tongfeng Electronics Co., LTD. (hereinafter referred to as the "Company") received the Decision of Anhui Regulatory Bureau of China Securities Regulatory Commission on administrative supervision measures on Anhui Tongfeng Electronics Co., LTD. [2020] No. 33 (hereinafter referred to as the "Warning Letter") on December 31, 2020, which is hereby announced as follows:

 

I. Specific contents of the Warning Letter

Anhui Tongfeng Electronics Co., LTD. :

According to the "Securities Law of the People's Republic of China", "Measures for On-site Inspection of Listed Companies" and other regulations, our bureau has recently carried out on-site inspection of your company. After investigation, it is found that your company has the following problems:

First, incomplete information disclosure. According to the 2019 Annual List of Key polluters in Tongling published by the Bureau of Ecological Environment of Tongling, Tongfeng Electronics is one of the "key polluters in the atmosphere". As a key polluter, your company failed to disclose environmental information in the 2019 semi-annual report.

Two, the financial accounting and management is not standardized. First, the implementation of revenue recognition policy is not standard. Your company has carried out weak current engineering and other construction projects for the major shareholder's related party, and the total amount of the projects has been 7,974,584.41 yuan. The above projects have been basically completed or are in the settlement stage. The Company does not, in accordance with its disclosed revenue recognition policy for construction contracts, recognize construction revenue when the results of construction contracts can be reliably estimated and still report it as an inventory asset. Second, the impairment of fixed assets is not standardized. In 2019, the company directly took five production lines as one asset group to determine the recoverable amount of the asset group, without fully analyzing the rationality of asset group division. It does not analyze whether the plant and other fixed assets are apportioned. When using cash flow method to carry out impairment test, 4.9% interest rate of commercial loans with a maturity of more than 5 years is directly used as the discount rate, and the discount rate is not fully analyzed.

Third, the company's internal control system is not in place. First, the internal control self-evaluation report draft to be improved. The working papers of the internal audit department of listed companies failed to fully cover the relevant aspects listed in the 2019 internal self-evaluation report, and the comprehensiveness and effectiveness of the internal audit papers need to be strengthened and standardized. Second, the audit control measures for the impairment of fixed assets are not in place. The impairment test sheet of the film production line of the listed company is not submitted for examination and approval in time according to the authority prescribed by the internal control system.

The above behavior violates the "Management Measures for information disclosure of listed companies", "Content and format of semi-annual reports", "accounting Standards for enterprises", "Basic norms for enterprise internal control" and other relevant provisions.

According to Article 59 of "Administrative Measures for Information Disclosure of Listed Companies" and Article 21 of "Measures for On-site Inspection of Listed Companies", our bureau has decided to take administrative supervision measures to issue a warning letter to your company, and record it in the integrity file of securities and futures market. Now it is required that your company attach great importance to the above problems, strictly abide by the relevant regulations and requirements, effectively enhance the awareness and level of standardized operation, strengthen financial accounting management, improve internal control, and improve the quality of information disclosure. Our bureau will continue to pay high attention to the major issues of the company, and take further regulatory measures according to the situation.

If he/she disagrees with the supervision and management measures, he/she may file an application for administrative reconsideration with the China Securities Regulatory Commission within 60 days after receiving the written decision, or file a lawsuit with the competent people's court within 6 months after receiving the written decision. During the period of reconsideration and litigation, the above supervision and management measures shall not be suspended.

 

Ii. Relevant instructions

After receiving the Warning Letter, the Company attaches great importance to the relevant problems pointed out in the Warning Letter, and will further enhance the awareness and level of standardized operation in strict accordance with the requirements of Anhui Regulatory Bureau of China Securities Regulatory Commission. The company and relevant personnel will earnestly learn lessons and strengthen the study of relevant laws, regulations and normative documents; Organize relevant departments of the company to improve the internal control system and further sort out the business process; Improve the standard level of accounting, perfect the financial accounting management system; The Company will continue to improve the quality of information disclosure and ensure that the information disclosure is true, accurate and complete.

This is to announce.



Board of directors of Anhui Tongfeng Electronics Co., LTD

January 4, 2021