NB KBE's controlling shareholder received an administrative penalty decision

According to the announcement from Zhitong Finance APP, NB KBE (300863.SZ) announced that on March 14, 2025, it disclosed the "Announcement on the Controlling Shareholder Receiving the Notice of Case Filing" (Announcement No.: 2025-021). Due to the controlling shareholder Ningbo XinXie Industrial Group Co., Ltd. (referred to as "XinXie Industrial") being suspected of short-term trading of "KBE Convertible Bond 02", the China Securities Regulatory Commission (referred to as "CSRC") decided to file an investigation against XinXie Industrial. On May 16, 2025, XinXie Industrial received the "Administrative Penalty Decision" (No. [2025] 3) issued by the Ningbo Regulatory Bureau of the CSRC (referred to as "Ningbo CSRC"). The relevant situation is announced as follows: According to the relevant provisions of the "Securities Law", the Ningbo CSRC conducted a case investigation into XinXie Industrial's short-term trading of KBE's convertible bonds "KBE Convertible Bond 02", legally informing the parties of the facts, reasons, basis for administrative penalties, and the rights entitled to the parties. The parties did not raise any statements or defense opinions, nor did they request a hearing. The investigation and handling of this case have now been concluded. It has been found that XinXie Industrial has the following illegal facts: XinXie Industrial is a shareholder holding more than 5% of KBE's shares. From September 25, 2024, to October 15, 2024, XinXie Industrial traded "KBE Convertible Bond 02" through the "XinXie Industrial" securities account via block trading and centralized bidding, including selling a total of 927,850 "KBE Convertible Bond 02" on September 25, 2024, with a transaction amount of 120,286,474.00 yuan, buying a total of 7,260 "KBE Convertible Bond 02" on September 30, 2024, with a transaction amount of 1,448,181.13 yuan, and selling a total of 2,079,117 "KBE Convertible Bond 02" from September 30, 2024, to October 15, 2024, with a transaction amount of 361,713,763.74 yuan, which involved buying within six months after selling and selling within six months after buying. The above illegal facts are sufficiently proven by company announcements, securities account data, transaction records, fund flows, inquiry records, and other evidence. According to Article 2, Paragraph 2 of the "Administrative Measures for Convertible Bonds" (CSRC Order No. 178), "KBE Convertible Bond 02" is classified as "securities with equity nature" as defined by the "Securities Law". The Ningbo CSRC believes that XinXie Industrial's above actions violated the provisions of Article 44, Paragraph 1 of the "Securities Law", constituting the illegal acts described in Article 189 of the "Securities Law". Based on the facts, nature, circumstances, and social harm degree of the parties' illegal actions, according to the provisions of Article 189 of the "Securities Law", our bureau decided: to warn Ningbo XinXie Industrial Group Co., Ltd. and impose a fine of 800,000 yuan