Huanrui century receives three fines. Huanrui century has illegal facts in information disclosure. Huanrui century was fined a total of 4.52 million yuan!
Huanrui century receives three fines
On November 5, huanrui century United Co., Ltd. (hereinafter referred to as "huanrui century", stock code: 000892. SZ) issued an announcement on receiving the administrative punishment decision of Chongqing regulatory bureau of China Securities Regulatory Commission. China Securities Regulatory Commission filed an investigation on huanrui century in 2017. Through two years of investigation, huanrui century has illegal facts in information disclosure.
In this regard, Chongqing regulatory bureau of China Securities Regulatory Commission issued the prior notice of administrative punishment of Chongqing regulatory bureau of China Securities Regulatory Commission (punishment Zi [2019] No. 3, punishment Zi [2019] No. 4 and punishment Zi [2019] No. 5) to huanrui century, with a total fine of 4.52 million yuan.
According to the administrative punishment decision, the punishment of huanrui century is related to the fictitious performance of its wholly-owned subsidiary huanrui film and television for four consecutive years.
In February 2016, huanrui century planned to purchase 100% equity of huanrui film and television held by 60 shareholders of huanrui film and television such as huanrui culture, Chen Yuan and Zhong Junyan with non-public offering shares. In November of that year, huanrui film and television became a wholly-owned subsidiary of huanrui century.
The price of the underlying assets of this transaction is RMB 3 billion, which exceeds 100% of the total assets of RMB 3083700 in the audited consolidated financial report of huanrui century in 2014; Huanrui century did not generate operating income in 2014. It is proposed to purchase assets in this transaction. The operating income of huanrui film and television in 2014 is about 294 million yuan, more than 100% of the operating income of the listed company, constituting a major asset restructuring.