Jiangsu Sunshine (600220): Warning Letter From Shanghai Stock Exchange

Jiangsu Sunshine (600220) received the warning letter from the Shanghai Stock Exchange on July 21, and the Shanghai Stock Exchange gave supervision warning to Zhao Jing, Xu Weimin, the then Secretary of the company, and Xu Xiayu, the then chief financial officer.

It is found that the information disclosure in the periodic reports disclosed by the company is inaccurate and incomplete.

First, the company has confirmed the inventory of some raw materials purchased from Hebei Yuteng Cashmere Products Co., Ltd. in advance, the amount involved in the semi annual report and the third quarter report in 2021 is 87.1682 million, which leads to inaccurate inventory disclosure in relevant periodic reports.

Second, the company recognizes revenue according to product number, but carries out cost accounting according to product category, which leads to the mismatch between cost carry forward and revenue recognition amount, and cost information is inconsistent with the actual situation of the company.

Third, when calculating the inventory falling price reserves of goods (fabrics), the company calculates the cost and net realizable value of the inventory on the basis of category, regardless of the item number, and measures the net realizable value of all inventories according to the average selling price in December, regardless of whether it is held for the execution of the sales contract.

Fourth, in the company's periodic report from 2013 to 2020, the first commitment and performance of Jiangsu Sunshine Group Co., Ltd. to transfer "sunshine" brand trademark to the company for free was not disclosed.

The Shanghai Stock Exchange pointed out that to sum up, the information disclosure in the multi period periodic report of Jiangsu Sunshine is inaccurate and incomplete, and the above behaviors violate Articles 9 and 12 of the accounting standards for business enterprises - basic standards, articles 4, 17 of the accounting standards for Business Enterprises No. 1 - inventory Article 18 and articles 1.4, 2.1 and 2.5 of Shanghai Stock Exchange Stock Listing Rules (revised in 2020) (hereinafter referred to as "Stock Listing Rules").

In terms of responsible persons, Zhao Jing (term of office from March 9, 2018 to present), Xu Weimin (term of office from July 14, 2008 to March 9, 2018), and Xu Xia (term of office from April 22, 2004 to April 27, 2022) as the person in charge of financial matters at that time were not diligent and responsible for the company's violations.

In view of the above violation facts and circumstances, and in accordance with Article 16.1 of the stock listing rules and the measures for the implementation of disciplinary sanctions and regulatory measures of Shanghai Stock Exchange, the supervision department of Shanghai Stock Exchange has decided to give supervision warning to Zhao Jing and Xu Weimin, Secretary of the board of directors of Jiangsu Sunshine Co., Ltd., and Xu Xia, then chief financial officer.