On Saturday, The Warning Letter Was Alleged That The 750 Million Yuan Related Transaction Was Not Timely Approved And Disclosed.

On Saturday, July 2nd (002291, SZ) announced that the company received the decision of the Guangdong Securities Regulatory Commission of the China Securities Regulatory Commission (hereinafter referred to as the Guangdong Securities Regulatory Commission) to issue a warning letter to Limited by Share Ltd, Yu Hongtao and He Jianfeng on Saturday. Guangdong securities regulatory bureau pointed out that from July 2019 to September, it was jointly established with Foshan Nanhai yuan Qi Investment Limited company on Saturday with Hongzhen Commercial Co., Ltd., Hangzhou Honghua Commercial Co., Ltd. and Hangzhou Xinyi Commercial Co., Ltd. (hereinafter referred to as three Brand Company), and the company holds three stake in Brand Company 45% respectively. The three Brand Company mainly carry out the marketing business of authorized products of the company. The company has an important influence on its day-to-day business activities through the examination of three Brand Company business indicators and business activities, and the company's chairman and general manager is Hong Tao in Hangzhou. According to the relevant regulations, three Brand Company are affiliated parties.

From July 2019 to March 2020, the related transactions between the subsidiaries and three Brand Company on Saturday were about 750 million yuan. For the above connected transactions, the company failed to fulfill the related transaction approval procedures and disclosure obligations in accordance with the regulations. It did not convene the board meetings and shareholders' meetings until April 21, 2020 and May 13th to make supplementary confirmation and disclosure. The company's related behavior violates the relevant provisions of the administrative measures for information disclosure of listed companies.

In this regard, Guangdong securities regulatory bureau decided to take the administrative supervision measures on Saturday, the company's chairman and general manager Yu Hongtao and He Jianfeng.

The reporter noted that after the board meeting was held in April 21st to confirm the related transactions, the details of the related transactions were detailed in the 2019 annual report released on April 23rd, which is the retail business of the footwear brands "ST&SAT" (Saturday), "D:FUSE" (Diffs) and "SAFIYA" (Sophia) of the three Brand Company operating companies, and the company passed the company's approval. A wholly owned subsidiary, Hangzhou Jia Yi commerce Co., Ltd. sells products to Brand Company and charges royalties to Brand Company.

? ? ? On Saturday, it has been stated that through the changes in the way of operation of the above retail business, we can gradually reduce the proportion of offline stores in the company on the basis of ensuring the stability of the company's business, and gradually transform the original department stores into the franchise stores. This will help the company to gradually reduce the storage level, optimize the asset structure and improve the efficiency of asset operation, and on the other hand, it will be advantageous. To improve operating cash flow, speed up capital turnover, reduce business pressure, and further enhance profitability, so that the company can focus on brand management, supply chain service light assets operation mode transformation.

As of July 2nd closing, Saturday reported 22.98 yuan / share, a slight drop of 0.65%.