On May 18, 2021, the Shanghai Stock Exchange (SSE) made a disciplinary decision to publicly condemn Easy Visible Supply Chain Management Co., Ltd. (Easy Visible) to all of its directors, supervisors and senior management members for the violation of failing to disclose the annual report 2020 and the 1st quarter report of 2021 within the required time. For the vicious violation which had great influence on the market and touched the bottom line of supervision, the SSE punished Easy Visible and relevant responsible persons according to laws and regulations. By so doing, the SSE actively performs its front-line supervision role of information disclosure, focuses on the primary goal of promoting the quality of listed companies while resolutely implementing the work requirement of "zero tolerance". All this contributed to strengthening the deterrent demonstration effect and purifying market ecology.

So far, the SSE has rounded off the disclosure of the annual report of 2020 of listed companies. In an announcement on April 30, 2021, Easy Visible, the only listed company on SSE that has not disclosed the annual report of 2020 and the 1st quarter report of 2021 within the required time, stated that because the assets, liabilities, rights and obligations arising from business need to be further sorted out and checked and that some major matters need to be further implemented, it could not disclose the annual report 2020 and the 1st quarter report of 2021 within the required period. Up to now, the company has not disclosed the above-mentioned periodic reports. According to the relevant provisions of the Securities Law, it is the legal obligation of listed companies to compile and disclose regular reports. If listed companies fail to disclose the annual reports and other periodic reports on time, such failure will seriously damage the interests of investors and affect the reasonable expectation of investors to obtain the information of listed companies in a comprehensive and timely manner. During the preparation of regular reports, all directors, supervisors and senior management members of listed companies shall be diligent and responsible to ensure that the regular reports are prepared and disclosed within the required period. Their legal responsibilities shall not lessen due to internal job division or professional background. All directors, supervisors and senior management members of listed companies should be responsible for the violation of failing to disclose the periodic reports on time.

The SSE has been paying close attention to Easy Visible’s failing to disclose the annual report on schedule. The exchange has sent letters several times in advance to clarify the regulatory requirements and urged Easy Visible to timely disclose the progress of the annual report preparation, fully prompting the risks of failing to disclose the report on time. After Easy Visible failed to disclose the annual report on time, the SSE, in accordance with the principle of "three timely" self-regulation (i.e., timely discovery, timely check, and timely investigation and solution), promptly initiated disciplinary procedures to seriously pursue the responsibilities of Easy Visible and relevant responsible persons. At present, according to relevant rules, trading of Easy Visible shares has been suspended. If the company fails to disclose annual report of 2020 within a certain period, the SSE will delist its shares according to the regulations.

The SSE will fulfill its duty in daily supervision and investigation, handling information disclosure violations and crackdown on significant violations. To that end, the SSE will continue to implement the policy of "building system, no intervention and zero tolerance", aiming to improve the promptness of disciplinary action and actively create a sound market environment where honest and trustworthy listed companies can operate properly, focus on main business and stable operations, hence promoting the quality of listed companies and smooth and healthy development of capital market.

Attachment:

Decision on Publicly Condemning Violation of Easy Visible Supply Chain Management Co., Ltd. and Relevant Responsible Persons