According to a report from Economic Information Agency on the 19th, NEW CONCEPTS (02221) announced that on December 26, 2022, its wholly-owned subsidiary Yisheng, as the lender, entered into a loan agreement with Shenzhen Dingxin, as the borrower. Yisheng granted a loan of RMB 19 million to the borrower, with a term of 2 years, constituting a disclosable transaction, but failed to comply with the notification and announcement requirements.

The group stated that as of yesterday, the total outstanding principal amount of the loan was approximately RMB 16.8 million. The group has fully recognized impairment on the loan for the fiscal year ending March 31 of this year.

The group expressed regret over the delay and omission in disclosure. To prevent similar situations in the future, remedial measures have been implemented, including instructing management to review the existing loan portfolio to ensure all loans fully comply with listing rules, arranging regular monthly departmental meetings to monitor potential disclosable transactions, and appointing an independent internal control consultant to conduct an internal review of key deficiencies in the internal control procedures for granted loans, among other actions. (wh)