SSE Science and Technology Innovation Public Supervision Letter [2024] No. 0059

Regarding Beijing Cain Technology Co., Ltd. and related responsibilities

The decision to give a regulatory warning

Parties:

Beijing Cain Technology Co., Ltd., A-share securities abbreviation: Cain Technology, A-share stock code: 688687;

Zhou Desheng, then chairman and general manager of Beijing Cain Technology Co., Ltd.;

Guo Wei was the then head of finance of Beijing Cain Technology Co., Ltd.

According to the facts ascertained in the Decision on Ordering Corrective Measures against Beijing Cain Technology Co., Ltd., Zhou Desheng and Guo Wei ([2024] No. 303) (hereinafter referred to as the "Decision on Administrative Supervision Measures") issued by the Beijing Supervision Bureau of the China Securities Regulatory Commission, the income accounting management of Beijing Cain Technology Co., Ltd. (hereinafter referred to as the Company) is not in place. In the first quarter, semi-annual and third quarterly reports of 2023, there are revenue spans, and the relevant information disclosure is inaccurate. In addition, there are problems such as non-standard accounting and management of sales expenses and operating costs, non-standard disclosure of related parties and related party transactions, and inaccurate disclosure of non-financial information related to external donations.

Periodic reporting is a major matter of concern to investors, which may have an impact on the company's stock price and investors' decision-making, and the company should objectively and prudently account for and disclose the current financial data in accordance with accounting standards. The Company's inaccurate disclosure of financial information in multiple periodic reports violated Articles 5.1.2 and 5.1.4 of the Rules Governing the Listing of Stocks on the Sci-Tech Innovation Board of the Shanghai Stock Exchange (hereinafter referred to as the "Rules Governing the Listing of Stocks on the Sci-Tech Innovation Board").

In terms of responsible persons, Zhou Desheng, the then chairman and general manager of the company, as the main person in charge of the company and the first person responsible for information disclosure, and Guo Wei, the then financial director, as the specific person in charge of the company's financial matters, were primarily responsible for the company's relevant violations according to the determination of the "Decision on Administrative Supervision Measures", and violated Articles 4.2.1, 4.2.4, 4.2.5, 5.1.2 and other provisions of the "Rules for the Listing of Stocks on the Science and Technology Innovation Board" and their provisions in the "Directors (Supervisors, Statements and Undertakings of Senior Management.

In view of the facts and circumstances of the above-mentioned breaches, in accordance with Article 1 of the Rules Governing the Listing of Stocks on the STAR Market

Article 14.2.1, Article 14.2.2 and the Implementation Measures for Disciplinary and Regulatory Measures of the Shanghai Stock Exchange and other relevant provisions, our department has made the following regulatory measures:

Zhou Desheng, then chairman and general manager of Beijing Kain Technology Co., Ltd., and Guo Wei, then head of finance, were given regulatory warnings.

In accordance with the Measures for the Implementation of Disciplinary and Regulatory Measures of the Shanghai Stock Exchange, your company and its directors, supervisors and senior management personnel (hereinafter referred to as directors, supervisors and senior managers) are requested to take effective measures to rectify the relevant violations, and conduct in-depth investigations on the potential compliance hazards in the company's information disclosure and standardized operation in combination with the violations pointed out in this decision, formulate targeted preventive measures, and effectively improve the level of the company's information disclosure and standardized operation. The company is requested to submit a rectification report signed and confirmed by all directors, supervisors and senior officers to our department within one month after receiving this decision.

The company and its directors, supervisors and senior executives should draw inferences from each other to avoid the recurrence of such problems. The Company shall operate in strict accordance with the provisions of laws, regulations and the Rules for the Listing of Stocks on the STAR Market, and conscientiously fulfill its information disclosure obligations; Directors, supervisors and senior executives shall perform their duties of loyalty and diligence to promote the Company's standardized operation and ensure that the Company discloses all material information in a timely, fair, true, accurate and complete manner.

Shanghai Stock Exchange Science and Technology Innovation Board Company Management Department

December 19, 2024

Attachment: The original text of the announcement