Shandong Jinmao Textile And Chairman Eat Warning Letter Annual Report Incomplete Disclosure Of The Relationship Between The Parties

According to the website of the SFC, Shandong Securities Regulatory Bureau issued a decision on Issuing warning letters to Shandong Jinmao Textile Chemical Group Co., Ltd. (referred to as "Shandong Jinmao textile") and Xu Pengming.

According to the investigation, Shandong Jinmao textile has not disclosed its related party relationship completely in the relevant bond prospectus and the 2016 annual report of Shandong Jinmao Textile Chemical Group Co., Ltd. corporate bonds.

The above act violates the fourth provision of the "Regulations on the issuance and trading of corporate bonds". As chairman of Shandong Jinmao textile company, Xu Pengming failed to be honest, trustworthy and diligent, and he was primarily responsible for the above violations. He violated the fifth provision of the "Regulations on the issuance and trading of corporate bonds". According to the provisions of the fifty-eighth regulation on the issuance and trading of corporate bonds, the Shandong securities regulatory bureau decided to take the administrative supervision measures of Shandong Jinmao textile and Xu Pengming to issue warning letters.

Article fourth of the measures for the management and issuance of corporate bonds: the issuer and other information disclosure obligor shall perform the obligation of disclosure in a timely and fair manner. The information disclosed or submitted must be true, accurate and complete, and there must be no false record, misleading statement or serious omission.

The fifth section of the "Regulations on the issuance and trading of corporate bonds": the issuer and its controlling shareholder and the actual controller shall be honest and trustworthy. The directors, supervisors and senior managers of the issuers shall be diligent and conscientious in maintaining the legal rights of the bondholders and the rights stipulated in the written statement of bond collection.

Article fifty-eighth of the "Regulations on the issuance and trading of corporate bonds": the CSRC may take relevant regulatory measures such as ordering corrections, supervising a conversation, issuing a warning letter, ordering a public statement, ordering to attend training, ordering a regular report, identifying an inappropriate person, and temporarily accepting documents related to the administrative license. The CSRC may take punishment according to the relevant laws and regulations of the securities law, the administrative punishment law, and the relevant provisions of the China Securities Regulatory Commission.

The following is the original text:

Decision on the warning letter issued by Shandong Jinmao Textile Chemical Group Co., Ltd. and Xu Pengming

[2019] 58

Shandong Jinmao Textile Chemical Group Co., Ltd. and Xu Pengming:

According to the investigation, Shandong Jinmao Textile Chemical Group Co., Ltd. has not disclosed its related party relationship completely in the relevant bond prospectus and the 2016 annual report of Shandong Jinmao Textile Chemical Group Co., Ltd. corporate bonds.

The above act violates the fourth provision of the "Regulations on the issuance and trading of corporate bonds". As chairman of Shandong Jinmao Textile Chemical Group Co., Ltd., Xu Pengming failed to be honest, trustworthy and diligent, and he was primarily responsible for the above violations. He violated the fifth provision of the "Regulations on the issuance and trading of corporate bonds". According to the provisions of the fifty-eighth regulation on the issuance and trading of corporate bonds, our bureau decided to take the administrative supervision measures on the warning letters issued by Shandong Jinmao Textile Chemical Group Co., Ltd. and Xu Pengming.

If it is not satisfied with the supervision and management measures, it may apply to the China Securities Regulatory Commission for administrative reconsideration within 60 days from the date of receipt of this decision, and may also bring a suit in a people's court having jurisdiction within 6 months from the date of receipt of this decision. During the period of reconsideration and litigation, the above supervision and management measures shall not be suspended.