Correction Announcement Regarding the 2022 Annual Report
Securities Code: 002118
Securities Abbreviation: *ST Zixin
Announcement Number: 2023-083
Jilin Zixin Pharmaceutical Co., Ltd. (hereinafter referred to as "the Company") and all members of the Board of Directors guarantee that the content of the information disclosure is true, accurate, and complete, without false records, misleading statements, or significant omissions.
The Company disclosed its "2022 Annual Report" on April 29, 2023, on the Giant Tide Information Network (http://www.cninfo.com.cn). After a subsequent review and self-examination, it was found that there were omissions in the "Section 4 Corporate Governance" regarding "5. Information on Directors, Supervisors, and Senior Management" under "2. Employment Status" and "Section 6 Important Matters" under "12. Penalties and Rectification." This announcement serves to supplement and correct that information. The corrections will not affect the Company's financial condition and operational results for 2022.
Specific Corrections:
- In the Company's "2022 Annual Report," "Section 4 Corporate Governance," "5. Information on Directors, Supervisors, and Senior Management," "2. Employment Status," the correction before was:
"The situation of penalties imposed by securities regulatory authorities on current and former directors, supervisors, and senior management in the past three years □ Applicable √ Not Applicable."
The correction after is:
"The situation of penalties imposed by securities regulatory authorities on current and former directors, supervisors, and senior management in the past three years √ Applicable □ Not Applicable."
The Company received a notice from the Shenzhen Stock Exchange on November 1, 2022, regarding the decision to issue a public criticism against Jilin Zixin Pharmaceutical Co., Ltd. and related parties (Shenzhen Stock Exchange [2022] No. 1048). It was found that Jilin Zixin Pharmaceutical Co., Ltd. (hereinafter referred to as "Zixin Pharmaceutical" or "the Listed Company") and related parties had the following violations:
On January 14, 2022, Zixin Pharmaceutical disclosed the "2021 Annual Performance Forecast," estimating a net profit attributable to shareholders of the listed company (hereinafter referred to as "net profit") of -485 million to -430 million yuan. On February 25, 2022, Zixin Pharmaceutical disclosed the "2021 Annual Performance Quick Report," estimating the net profit for 2021 to be -554.7389 million yuan. On April 26, 2022, Zixin Pharmaceutical disclosed the "2021 Annual Performance Quick Report Correction Announcement," estimating the net profit for 2021 to be -952.2556 million yuan. On June 30, 2022, Zixin Pharmaceutical disclosed the "2021 Annual Report," with an audited net profit of -998.0949 million yuan. The net profit disclosed in the performance forecast significantly differed from the audited net profit and was not corrected in a timely manner. Zixin Pharmaceutical's actions violated the Shenzhen Stock Exchange's "Listing Rules (2022 Revision)" Articles 1.4, 2.1.1, 5.1.3, and 5.1.4. The then Chairman and General Manager Feng Youshun and Chief Financial Officer Luan Fumei failed to fulfill their duties and obligations of honesty and diligence, violating Articles 1.4, 2.1.2, 4.3.1, and 5.1.9 of the "Listing Rules (2022 Revision)," and bear significant responsibility for the aforementioned violations.
In light of the above violations and circumstances, according to Article 13.2.3 of the "Listing Rules (2022 Revision)" and Article 17 of the "Self-Regulatory Supervision Guidelines for Listed Companies No. 12 - Standards for Disciplinary Actions," the Disciplinary Committee of the Exchange reviewed and approved the following disciplinary decisions:
- A public criticism against Jilin Zixin Pharmaceutical Co., Ltd.;
- A public criticism against Feng Youshun, the then Chairman and General Manager, and Luan Fumei, the Chief Financial Officer;
- The violations and the disciplinary actions taken against Jilin Zixin Pharmaceutical Co., Ltd. and related parties will be recorded in the company's integrity file and made public.