Involving illegal acts such as false income, ST Special Letter and relevant parties shall receive the administrative penalty decision of the Shenzhen Securities Regulatory Bureau

On July 5th, ST Special Letter announced on July 5th that recently, the company and the parties received the "Administrative Penalty Decision" issued by the Shenzhen Securities Regulatory Bureau. On April 8, 2015, SDF Information and Chen Chuanrong and other 4 SDF shareholders signed the "Agreement on Issuance of Shares and Payment of Cash to Purchase Assets" to purchase 100% of SDF Dongzhi's equity by paying cash and issuing shares. On November 4, 2015, SDF Dongzhi became a wholly-owned subsidiary of SDF Information. Since November 30, 2015, SDF Information has included SDF Dongzhi in the scope of consolidated statements. SDF Dongzhi has inflated revenue, inflated or reduced operating costs and profits by adjusting operating costs and fictitious businesses across periods.