[Chart: Bestway logo]
Announcement Regarding Regulatory Measures or Penalties Imposed by Securities Regulatory Authorities and Stock Exchanges in the Past Five Years
The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, with no false records, misleading statements, or material omissions.
Since its listing, Bestway Marine & Energy Technology Co., Ltd. (hereinafter referred to as "Bestway" or the "Company") has strictly operated in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Rules Governing the Listing of Securities on the ChiNext Market of the Shenzhen Stock Exchange, and the Guidelines for Standardized Operation of Companies Listed on the ChiNext Market of the Shenzhen Stock Exchange. The Company is committed to improving its corporate governance structure, establishing and perfecting internal control systems, standardizing operations, and promoting sustainable and standardized development.
In view of the Company's proposed issuance of shares to specific targets, and in accordance with relevant requirements, the Company has conducted a self-inspection of regulatory measures or penalties imposed by securities regulatory authorities and stock exchanges over the past five years. The relevant information is hereby announced as follows:
I. Penalties Imposed by Securities Regulatory Authorities and Stock Exchanges in the Past Five Years
In August 2022, the Company received the "Decision on Administrative Penalty" (Hu [2022] No. 16) issued by the Shanghai Bureau of the China Securities Regulatory Commission (hereinafter referred to as "Shanghai Securities Regulatory Bureau"). The main contents are as follows: First, the Company's subsidiary, Taizhou Jinhaiyun Marine Equipment Co., Ltd. (renamed "Jiangsu Jinhaiyun Technology Co., Ltd.", hereinafter referred to as "Jinhaiyun"), fabricated related amusement facility trade business, resulting in false records in the Company's 2017 annual report. Second, the Company failed to disclose the progress of important contracts in a timely manner as required. In accordance with the provisions of Article 193, Paragraph 1 of the 2014 Securities Law, the Shanghai Securities Regulatory Bureau decided to impose administrative penalties on the Company, including an order to rectify, a warning, and a fine of 400,000 yuan. Administrative penalties including warnings and fines were also imposed on Jinhaiyun's then-executive director Li Lu, then-executive deputy general manager Wang Zhihong, and then-financial officer Zhai Hongling, as well as the Company's then-chairman and general manager, and the then-financial director and Jinhaiyun's financial director.
On January 12, 2024, the Shenzhen Stock Exchange (hereinafter referred to as "SZSE") issued the "Decision on Disciplinary Action against Bestway Marine & Energy Technology Co., Ltd. and Relevant Parties" (Shen Zheng Shang [2024] No. 34) due to the same matters mentioned above.