*ST Gaosheng (000971): Decision To Receive Administrative Penalty

Gaosheng Holdings has been investigated by the China Securities Regulatory Commission in September 27, 2018 on suspicion of information disclosure violation. In October 17, 2019, the company received the "administrative penalty and market entry notice" issued by the Hubei Regulatory Commission of the China Securities Regulatory Commission (number: [2019]5). Recently, the incident had the final result.

Reporters from the *ST Gao Sheng issued a notice to see: in December 24, 2019, the company received the Hubei Securities Regulatory Commission issued the "administrative penalty decision", the actual controller Wei Zhenyu received the Hubei Securities Regulatory Commission issued the "market ban decision". According to the facts, nature, circumstances and social harmfulness of the party's illegal activities, according to the relevant regulations, Hubei's regulatory decision is to give a warning to Gaosheng Cmi Holdings Ltd and impose a fine of six hundred thousand yuan; to warn Wei Zhenyu and impose a fine of three hundred thousand yuan; at the same time, Wei Zhenyu, as the controller of Gaosheng holding company, gives a warning and fines a sum of six hundred thousand yuan, plus a total fine of nine hundred thousand yuan. Li Yao and Zhang Yiwen were cautioned and fined three hundred thousand yuan respectively. Sun Peng was given a warning and a fine of one hundred thousand yuan was imposed.

It can be seen that the illegal fact of *ST's rise has been confirmed. According to the relevant judicial interpretations, investors who bought it before September 28, 2018 and sell or continue to hold it after September 28, 2018 and have caused certain losses (whether or not to unbind) can protect their legitimate rights and interests through legal channels. You can also send names, telephone numbers and transaction records (recommended as Excel files) to weiquan@hongzhoukan.com's mailbox and participate in the claim collection activities organized by the "red weekly" and "civil rights protection" column. Investors who participate in this activity do not have to pay any lawyer fees before obtaining compensation, and the final claim conditions and claims are subject to the court's judgment.

In addition, *ST Gao Sheng said in the announcement that the above-mentioned decision on administrative penalty has not had a significant impact on the production and operation of the company. The company will comprehensively improve the level of compliance management and internal control, and resolutely prevent similar problems from happening again. The illegal activities involved by the company in the above-mentioned administrative penalty decision have not touched on the provisions of the second, fourth and fifth provisions of the Shenzhen stock exchange's enforcement measures for major illegal and compulsory delisting of listed companies, as well as the mandatory delisting of major violations of law stipulated in articles 13.2.1 (eight) to (ten) of the Stock Exchange Listing Rules of the stock exchange of the Shenzhen.

The reporter also learned from the announcement that Mr. Wei Zhenyu, the company's actual controller and director, submitted the resignation report to the company on 18 December 2019 and resigned from his position as director and special committee of the company. Mr. Wei Zhenyu is not in the company now. The company and the relevant parties send sincere apologies to the investors. Next, we will continue to track the progress of related events, and small investors who meet the rights protection conditions can also claim their rights through relevant legal channels.