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On the evening of April 28, 2017, Ingenious Ene-carbon New Materials Co., Ltd. (hereinafter referred to as “the Company”) disclosed the Announcement on Failure to Disclose Periodic Reports within the Statutory Period and Trading Suspension, saying the Company could not disclose its 2016 annual report and 2017 quarter one report within the statutory period.
In line with the law-based strict comprehensive regulatory philosophy, Shenzhen Stock Exchange (hereinafter referred to as “SZSE”) has been paying great attention to the risk of the Company’s possible failure of disclosing periodic reports as scheduled and has taken a series of regulatory measures. First, SZSE has paid great attention to closely follow the Company’s asset sale at 2016 year end. Regarding the Company’s sale of partial equity stake in a subsidiary disclosed in December 2016 to obtain investment income, SZSE successively issued three letters of concern to inquire and demand the Company and its appointed intermediary to make a statement on the accounting treatment of the Company’s assets sale and whether the assets sale has constituted major assets restructuring. Second, SZSE has been urged the Company in a timely manner to appoint an annual audit firm. With regard to the matter that the Company had not appointed its 2016 financial report audit firm, SZSE issued a letter of concern to the Company on March 27, 2017, requiring the Company to state the reason, relevant plan and the current progress, tell whether its annual report preparation would be affected and the solutions, analyze whether it is possible that the Company would fail to disclose its periodic reports on time, and make risk warnings. Third, SZSE has closely followed the development of the Company’s preparation of disclosing periodic report. On April 24, 2017, the Company convened a general meeting of shareholders and approved the proposal of appointing annual audit firm and SZSE telephoned the Company and its auditor at the first time to well prepare its 2016 annual report. On April 27, the Company received from its annual audit firm an official notice saying that the audit work could not be completed on the Company’s original annual report disclosure day and it was estimated that the Company’s periodic reports would not be disclosed within the statutory period. Thereupon, SZSE immediately required the Company to disclose in time the Risk Warning on the Forecast Failure of Disclosing Periodic Reports within Statutory Period and Possible Stock Listing Suspension to fully remind the market of its possible risks.
Considering that the Company cannot disclose its 2016 annual report and 2017 quarter one report within the statutory period and according to Article 12.6 of Stock Listing Rules, SZSE has imposed trading suspension on the Company’s stock from May 2, 2017 onward. In addition, SZSE will activate the punishment procedure as soon towards the Company and its interested parties, report the clues on its action against the law to China Securities Regulatory Commission and apply for putting it on record for further inspection.
SZSE hereby reiterates that the Company and all its directors should strictly abide by the laws and regulations including Securities Law, Corporation Law and Stock Listing Rules, actually, accurately and fully perform their respective information disclosure obligation in time, and practically take measures to eliminate the influence of failure to disclose periodic reports within statutory period so as to fully protect board investors’ interests.
