XPH: Received the "Notice of Administrative Penalty"

XPH announced that the company and relevant parties received the "Notice of Administrative Penalty Pre-Disclosure" from the Guangdong Regulatory Bureau of the China Securities Regulatory Commission. It was found that XPH's 2019 annual report contained false records and failed to disclose non-operating fund occupation by related parties as required, with significant omissions in the annual reports from 2016 to 2020. The China Securities Regulatory Commission intends to order XPH to make corrections, issue a warning, and impose a fine of 6 million yuan; issue a warning to the company's actual controller Wang Yonghui and impose a fine of 10 million yuan; and issue warnings and fines to other responsible personnel. In addition, Wang Yonghui has been subjected to a 5-year market ban