Global Top E-Commerce Co.Ltd(002640) : Announcement on receiving the decision on administrative supervision measures of Shanxi regulatory bureau of China Securities Regulatory Commission

Securities code: 002640 securities abbreviation: * ST cross border Announcement No.: 2022-023 Global Top E-Commerce Co.Ltd(002640)

About receipt of Shanxi regulatory bureau of China Securities Regulatory Commission

Announcement of the decision on administrative supervision measures

The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.

Global Top E-Commerce Co.Ltd(002640) (hereinafter referred to as “the company”) recently received the decision on ordering correction and issuing warning letter for Global Top E-Commerce Co.Ltd(002640) issued by Shanxi regulatory bureau of China Securities Regulatory Commission [2022] No. 4. The relevant contents are hereby announced as follows:

Global Top E-Commerce Co.Ltd(002640)

On December 25, 2021, your company issued the announcement on correction of accounting errors, which said:

1. According to the company’s self inspection, the company’s subsidiary Shenzhen global Tesco e-commerce Co., Ltd. (hereinafter referred to as “global Tesco”) transferred current accounts into inventory of 4.424 billion yuan in 2020 and previous years. In order to digest the falsely increased inventory, global Tesco falsely disposed of inventory of 4.424 billion yuan in 2020, including the falsely increased operating cost of 1.779 billion yuan in 2020, In 2020, the false write off of inventories was 2.645 billion yuan (corresponding to 2.479 billion yuan of impairment provision).

2. After verification and analysis of the pending litigation at the end of 2020, the company adjusted and increased the accounts payable by 267 million yuan.

3. At the end of 2020, 64 million yuan of other receivables were found to be sales expenses that were not handled in time after checking the relevant contracts, payment approval forms and analyzing the nature of the funds. Therefore, 64 million yuan of other receivables should be reduced and 64 million yuan of sales expenses should be increased.

4. After the company verified the logistics expenses in the sales expenses in 2020, it was found that there was a cross period of expenses, that is, the sales expenses that should be attributed to 2019 were recorded in 2020, and the sales expenses – logistics expenses in 2020 were adjusted and reduced by 129 million yuan.

5. The company made another inventory of the office equipment of global Tesco at the end of 2020, and the inventory loss of fixed assets was RMB 10 million and the recorded fixed assets were RMB 16 million less (it was the less recorded plant construction project funds of Guangdong global Tesco (Zhaoqing) cross border e-commerce Co., Ltd.). Affected by the above matters, the disclosure of relevant financial data and information in your company’s 2020 annual report is inaccurate.

The above-mentioned acts violate the provisions of Article 2 of the measures for the administration of information disclosure of listed companies (Order No. 40 of the CSRC). According to the provisions of Article 59 of the measures for the administration of information disclosure of listed companies (Order No. 40 of the CSRC), our bureau has decided to take the supervision and management measures of ordering your company to make corrections and issuing a warning letter, which shall be recorded in the integrity archives of the securities and futures market. Your company shall rectify immediately from the date of receiving this decision, and submit a written rectification report to our bureau within 30 days from the date of receiving this decision. Your company shall effectively improve the quality of information disclosure and ensure the authenticity, accuracy and completeness of the information disclosed.

If you are not satisfied with the supervision and administration measures, you can apply to the China Securities Regulatory Commission for administrative reconsideration within 60 days from the date of receiving the decision, or you can bring a lawsuit to the people’s court with jurisdiction within 6 months from the date of receiving the decision. During the period of reconsideration and litigation, the above supervision and management measures shall not be suspended. “

It is hereby announced.

Global Top E-Commerce Co.Ltd(002640) board of directors February 15, 2002

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