Wanshili And The Chairman Of The Board Were Warned That The Use Of Raised Funds Was Not Standardized

On October 31, Zhejiang Securities Regulatory Bureau issued a decision on issuing a warning letter to Hangzhou Mastery Silk Culture Co., Ltd. and relevant personnel.

Zhejiang Securities Regulatory Bureau said that the following problems were found in Hangzhou Mastery Silk Culture Co., Ltd. (hereinafter referred to as the Company) during on-site inspection:

The company raised funds to invest in the "2.8 million meter annual digital printing production line technology transformation project". The actual total investment is quite different from the committed total investment. The company did not disclose the specific reasons in time. In the report on the use of raised funds disclosed by the Company from 2022 to 2023, the reasons for the low use ratio of raised funds were not disclosed accurately.

The company has problems such as non-standard use process of raised funds, inconsistent use of funds disclosed in the special account of raised funds with the tripartite supervision agreement, inaccurate disclosure of transfer of raised funds, etc.

Zhejiang Securities Regulatory Bureau pointed out that the above matters of the company violated the provisions of Article 3 of the Administrative Measures for Information Disclosure of Listed Companies (CSRC Order No. 182), Article 4 and Article 12 of the Regulatory Guidelines for Listed Companies No. 2 - Regulatory Requirements for the Management and Use of Raised Funds of Listed Companies (CSRC Announcement [2022] No. 15). Li Jianhua, the chairman and then general manager of the company, Yu Zhiwei, the general manager, Han Qing, the chief financial officer, and Ye Xiaojun, the secretary of the board of directors, violated Article 4 and Article 51 of the Administrative Measures for Information Disclosure of Listed Companies (CSRC Order No. 182), and were mainly responsible for the above violations.

According to Article 52 of the Administrative Measures for Information Disclosure of Listed Companies (CSRC Order No. 182), Zhejiang Securities Regulatory Bureau has decided to take the supervisory and administrative measures of issuing warning letters to the company, Li Jianhua, Yu Zhiwei, Han Qing and Ye Xiaojun, and record them in the securities and futures market integrity files.

On the 26th, Mastery released the Announcement on the Company and Relevant Responsible Persons Receiving the Warning Letter from Zhejiang Securities Regulatory Bureau. The company said that after receiving the warning letter, the company and all directors, supervisors and senior managers attached great importance to it, deeply reflected on the problems and shortcomings in the use process of the company's raised funds and information disclosure, and the company strictly followed the requirements of Zhejiang Securities Regulatory Bureau, Actively rectify and implement internal accountability. The Company will strengthen the study and understanding of directors, supervisors and senior managers on the Administrative Measures for Information Disclosure of Listed Companies and other relevant laws and regulations, further standardize the operation level of the Company, constantly improve the quality of information disclosure, practically fulfill the obligation of information disclosure according to law, and prevent the recurrence of such events.

According to the company's official website, Mastery is located in Hangzhou, Zhejiang Province, and has been focusing on the silk industry for 48 years. Adhere to the production of high-quality mulberry silk as raw material, and the products cover four main categories: silk scarves, silk household products, silk cultural and creative gifts, and silk printed fabrics.

In terms of performance, Mastery released its report for the third quarter of 2023, showing that the company's operating income in the first three quarters was 498 million yuan, up 21.20% year on year. The net profit attributable to shareholders of the listed company was 24278100 yuan, up 61.47% year on year. Non net profit deducted was 19.645 million yuan, up 2426.19% year on year.

On the secondary market, as of the close of the 31st day, the general interest fell 0.37% to 13.63 yuan, with a total market value of 2.567 billion yuan.