ROYAL GROUP(SZ:002329) Zheng Quan Zhi Xing·2025-06-13 13:48Core Viewpoint - The company, Huangshi Group, is under investigation by the China Securities Regulatory Commission (CSRC) for alleged violations of information disclosure laws, leading to administrative penalties [1][2][5]. Summary by Sections Administrative Investigation - Huangshi Group received a notice of investigation from the CSRC on March 28, 2025, due to suspected violations of information disclosure laws [1]. - The company was informed of the administrative penalty decision, which is based on the findings of the investigation [2][6]. Violations Identified - The investigation revealed that Huangshi Group failed to disclose a significant contract related to a partnership agreement with Dongyue Wealth, which included provisions for guaranteed returns and a buyback clause [3][4]. - The company did not disclose this important contract in its annual reports for 2019, 2020, 2021, and 2022, constituting a major omission [4][5]. Responsible Parties - Key executives, including the chairman and other board members, were found to have failed in their duties to ensure proper disclosure of the contract [5]. - Specific individuals, such as Yang Hongjun, the former vice president, and other board members, were identified as directly responsible for the violations [5]. Penalties and Consequences - The CSRC has mandated that the involved parties pay fines within 15 days of receiving the penalty decision [6]. - The company expressed regret over the incident and committed to improving its compliance and information disclosure practices moving forward [6].