Zhitong Financial App News, Fuanna (002327.SZ) announced that on October 8, 2023, the company received the “Decision of the Shenzhen Securities Regulatory Bureau to issue a warning letter against Shenzhen Fuana Household Products Co., Ltd., Lin Guofang, and Gong Yun” ([2023] No. 167) (“Warning Letter”) issued by the China Securities Regulatory Commission and the Shenzhen Securities Regulatory Bureau. The main details of this regulation are now announced as follows:

Shenzhen Fuana Household Products Co., Ltd., Lin Guofang, Gong Yun: On September 28, 2023, your company disclosed the “Notice of Resolutions of the 16th Meeting of the Fifth Board of Directors”, stating that the board of directors deliberated and passed the bill relating to the sixth restricted stock incentive plan by full vote. On September 29, 2023, your company disclosed the correction notice, saying that the content of the company's aforementioned resolution was misstated, and that the relevant directors have avoided such voting matters and should be included in the number of evasive votes. Furthermore, since 2022, your company has made data disclosure errors such as the number of unlockable restricted shares and the total amount of external guarantees. The above acts violate the provisions of section 3 (1) of the “Administrative Measures on Information Disclosure of Listed Companies” (Securities Regulatory Commission Order No. 182, same below). It reflects that your company's internal management of information disclosure is weak, and that the relevant personnel are not diligent and conscientious. Lin Guofang, the chairman and general manager of your company, and Gong Yun, secretary of the board of directors, bear the main responsibility for the above violations. According to the provisions of Article 51 (1), (2), and Article 52 of the “Administrative Measures on Information Disclosure of Listed Companies”, our bureau has decided to take supervisory measures to issue a warning letter against your company, Lin Guofang, and Gong Yun. Your company should learn lessons, strengthen the study of securities laws and regulations, strengthen the sense of responsibility for information disclosure, strictly manage information disclosure matters, effectively improve the quality of information disclosure, and prevent the recurrence of such irregularities in the future. Your company shall submit a written rectification report to our bureau within 15 working days after receiving this decision. If you disagree with this regulatory measure, you may apply for administrative review with the China Securities Regulatory Commission within 60 days from the date of receipt of this decision, or file a lawsuit with a competent people's court within 6 months from the date of receipt of this decision. The implementation of the above supervisory measures will not stop during the review and litigation period.

After receiving the decision on the above regulatory measures, the company and relevant personnel attached great importance to the issues pointed out in the “Warning Letter”, deeply reflected on the problems and shortcomings in the company's information disclosure work, carefully learned lessons, resolutely followed the requirements of the information disclosure regulations for listed companies, strengthened their study of the “Administrative Measures on Information Disclosure of Listed Companies” and other relevant laws and regulations, strengthened their sense of responsibility for information disclosure, continuously and effectively improved the quality of company information disclosure, and prevented the recurrence of such incidents.