Stock Code: 300202
Stock Abbreviation: *ST Julong
Announcement Number: 2022-063
Julong Co., Ltd. (hereinafter referred to as "the Company" or "Julong") and all members of the board of directors guarantee that the information disclosed is true, accurate, and complete, without false records, misleading statements, or significant omissions.
Special Reminder:
- Julong Co., Ltd. disclosed the announcement titled "Announcement on Fund Account Changes, Illegal Guarantees, and Fund Occupation by the Controlling Shareholder of Wholly-owned Subsidiary" (Announcement No. 2021-011) on April 12, 2021. According to Article 9.4, Item 5 and Article 9.5, Item 1 of the "Shenzhen Stock Exchange GEM Listing Rules (Revised December 2020)" (hereinafter referred to as "Listing Rules"), the Company's stock was subject to other risk warnings by the Shenzhen Stock Exchange on May 12, 2021. As of the date of this announcement, the total amount of funds occupied and illegal guarantees by the controlling shareholder and actual controller is 257.41 million yuan (this amount does not include interest).
1. Reasons for Implementing Other Risk Warnings and Their Impact on the Company
- Reasons for Implementing Other Risk Warnings
As of December 31, 2020, the balance of illegal guarantees was 355.97 million yuan, and the balance of funds occupied by the controlling shareholder was 164.05 million yuan. The Company held its first extraordinary general meeting in 2021 to review the "Proposal on Solutions to Illegal Guarantees and Fund Occupation by the Controlling Shareholder and Actual Controller, and Related Transactions" (Announcement No. 2021-057). The industrial and commercial change procedures for the investment share of Jiaxing Junxiang Investment Partnership (Limited Partnership) have been completed, and it has compensated 275.70 million yuan according to the fair value of its holdings in Xinyuan Co., Ltd. However, the controlling shareholder has not yet provided the remaining funds as promised. According to Article 9.4, Item 5 and Article 9.5, Item 1 of the "Shenzhen Stock Exchange GEM Listing Rules," the Company’s stock was subject to other risk warnings on May 12, 2021, because the controlling shareholder failed to resolve the illegal guarantees and fund occupation issues within one month after the Company disclosed the announcement (Announcement No. 2021-011).
- Impact on the Company
As of now, the Company is operating normally, and the management team is stable, with no substantial impact on production and operations. The cash flow situation is good, and cooperation with customers and suppliers remains stable, with no significant contract defaults due to this incident.