Funds frozen? Warning letter? What happened to these two companies?

Recently, Dongguan Co., Ltd. (hereinafter referred to as: Qinshang Shares) issued an announcement, disclosing that the company received court documents and that part of the funds in the raised fund account were frozen .

The announcement showed that Qinshang Shares received documents served by the Intermediate People's Court of Ningbo City, Zhejiang Province, involving a property preservation case between the company and Aidi Education Acquisition (Cayman) Limited (Aidi Education). Aidi Education applied to the Hong Kong International Arbitration Center , and the Ningbo Intermediate Court ruled to freeze bank deposits of RMB 400 million or equivalent equity held under the names of the respondents Heming Venture Capital and Qinshang Shares.

The bank account frozen this time is the special account for funds raised from the private placement of shares by Qinshang Shares, with RMB 53,834,695.62 in the account already frozen by the Ningbo Intermediate Court. This portion of funds accounts for 15.88% of the company's latest audited net assets.

Kingsun Shares stated that, due to the absence of investment projects for raised funds, the amount frozen in this application will not have a substantial impact on the company's daily production and business operations or capital turnover.

Kingsun Shares is an enterprise mainly engaged in the research, development, production, and sales of LED lighting products. Its products are widely used in , home lighting, engineering lighting, and other fields. The company is committed to providing efficient and energy-saving lighting solutions to consumers through technological innovation.

Another LED lighting company, Jiewate, recently received a warning letter from the Zhejiang Securities Regulatory Bureau . The content of the warning letter shows that Jiewate had previously transferred IPO raised funds into , mixing them with its own funds for cash management, which violated the relevant regulations on the management and use of raised funds in the "Administrative Measures for Information Disclosure by Listed Companies". Zhou Xunwei, Chairman of Jiewate, Huang Biliang, the then General Manager, Ma Wenwen, the current General Manager and Board Secretary, Xie Liheng, the Financial Director, and others bear primary responsibility for the above violations and will be recorded in the integrity archives of the securities and futures markets.

The company has the following problems in the management of raised funds and information disclosure : First, it did not open a dedicated wealth management account and transferred raised funds to a general account for cash management. During the cash management of raised funds, the company transferred a total of 351 million yuan of raised funds to a general account to purchase and large-denomination certificates of deposit. Second, there was mixed cash management between the dedicated account for raised funds and the general account. During the cash management of raised funds, the company mixed two batches of raised funds totaling 40 million yuan with its own funds to purchase structured deposits and large-denomination certificates of deposit.

The announcement stated that the above matters will not affect the company's daily operation and management. The company will strictly follow the requirements of relevant laws and regulations, conscientiously fulfill its information disclosure obligations, continue to strengthen financial management, improve the company's operation and management capabilities, effectively enhance awareness of compliance and performance capabilities, effectively safeguard the legitimate rights and interests of the company and all shareholders, and promote the healthy, stable, and sustainable development of the company.

Joulwatt is an analog integrated circuit design enterprise primarily operating under a virtual IDM model. According to Joulwatt's response to institutional research this month, in 2023, the company further enriched its product models and expanded its market share in emerging application areas such as new energy, computing, and automotive downstream markets. It successfully entered multiple high-growth potential niche market segments.

Source of materials: Corporate announcements, Science and Technology Innovation Board Daily, and other comprehensive compilations