Fined more than 3 million! Tongtuo's parent company is in trouble again...

Recently, Tongtuo's parent company Huading Holdings was suspected of illegal information disclosure, and the company and related executives were fined more than 3 million yuan.

It is reported that Huading Co., Ltd. received an "Investigation Notice" (Zhejiang Securities Investigation No. 2019426) from the China Securities Regulatory Commission on December 26, 2019 for suspected violations of information disclosure laws and regulations , and was investigated in accordance with relevant regulations.

On June 28, 2021, Huading Co., Ltd. received the investigation report on this matter from the Zhejiang Regulatory Bureau of the China Securities Regulatory Commission - "Preliminary Notice of Administrative Penalty and Market Ban" . The investigation report shows that Huading Co., Ltd.'s suspected information disclosure violations have been investigated and the Zhejiang Regulatory Bureau will propose to impose administrative penalties on Huading Co., Ltd. and take market ban measures in accordance with the law.

According to the "Preliminary Notice of Administrative Penalty and Market Ban", Huading shares are mainly suspected of violating two laws: first, failing to disclose the non-operating capital occupation of related parties as required; second, failing to disclose the joint borrowing situation as required.

From 2018 to 2019, Huading Co., Ltd. remitted funds to its controlling shareholder Sanding Holding Group Co., Ltd. and its controlled entities, or repaid debts on behalf of Sanding Group, in the name of advance purchase payment, advance project payment, etc. This behavior constituted non-operating capital occupation by related parties, with a cumulative amount of 1.497 billion yuan and a balance of 590 million yuan, but Huading Co., Ltd. did not disclose information as required and did not mention it in the annual report.

On May 9, 2019, Sanding Group signed a loan contract with Zhang Mouchun in the name of its employee Luo Mouyou, borrowing RMB 159 million from him. On August 8 of the same year , Huading Co., Ltd. and Zhang Mouchun signed a supplementary agreement, stipulating that Huading Co., Ltd. was a co-borrower of the loan. The agreement had the official seal of Huading Co., Ltd. and the seal of Ding Ermin. However, Huading Co., Ltd. failed to fulfill its temporary disclosure obligations as required.

It is reported that the then chairman Ding Ermin also served as a director of Sanding Group, and the then director Ding Zhimin also served as the chairman of Sanding Group. The two jointly organized and implemented the above-mentioned fund occupation and other matters, and were the directly responsible supervisors of Huading Co., Ltd.'s illegal information disclosure.

The China Securities Regulatory Commission's Zhejiang Regulatory Bureau has punished the relevant responsible persons, with the amount of fines ranging from 30,000 to 900,000 yuan. In addition, those who violated the law seriously were banned from the securities market. Huading shares were also ordered to make corrections, given a warning, and fined 600,000 yuan. This time, Huading shares and its executives were fined a total of 3.75 million yuan.

Tongtuo Parent Company

Illegal disclosure of information

Huading Shares