*ST Sitong (603838.SH) and related responsible persons received a warning letter from the Guangdong Securities Regulatory Bureau

Zhitong Finance App News, *ST Sitong (603838.SH) issued an announcement. The company recently received the “Decision on Ordering Corrective Measures against Guangdong Sitong Group Co., Ltd. and Issuing Warning Letter Measures against Deng Jianhua, Cai Zhentong, and Zhang Ping” from the Guangdong Regulatory Bureau of the China Securities Regulatory Commission. After investigation, the company had the following problems:

1. Revenue accounting is inaccurate. The company's 2025 quarterly report, semi-annual report, and three-quarter error report included relevant transactions as revenue. As a result, there was a big difference between the data for the first quarter, semi-annual report, and third quarter report of 2025 and the actual situation, and the disclosure of the relevant reports was inaccurate. The above situation does not comply with the provisions of Article 3 (1) of the “Administrative Measures on Information Disclosure of Listed Companies” (CSRC Order No. 182, CSRC Order No. 226, same below). The company made adjustments to relevant financial data when disclosing the 2025 Annual Report.

2. The confirmation of asset impairment losses is inaccurate. The company sold sanitary ceramic pile head products to a number of natural person customers in 2025, and the amount of losses incurred by the company was quite different from the inventory impairment preparation calculated by the company before the sale of the relevant goods. The company did not fully consider the net realizable value of such inventory to be significantly lower than the book value in the early stages, resulting in insufficient asset impairment losses and did not comply with the provisions of Articles 15 and 16 of the “Enterprise Accounting Standard No. 1 - Inventory”, resulting in inaccurate data disclosed in the relevant annual report reports, in violation of section 1 (1) (3) of the “Information Disclosure Management Measures for Listed Companies” regulations.

The company's chairman Deng Jianhua, general manager Cai Zhentong, and financial director Zhang Ping failed to perform their duties of diligence and due diligence in accordance with the provisions of section 4 of the “Administrative Measures on Information Disclosure of Listed Companies” and are mainly responsible for the company's related irregularities. According to the provisions of Article 52 (3) of the “Administrative Measures on Information Disclosure of Listed Companies”, the Guangdong Securities Regulatory Bureau decided to take administrative supervision measures to order corrections against the company and take administrative supervision measures to issue warning letters against Deng Jianhua, Cai Zhentong, and Zhang Ping.