Venture(US:VEMLY) Mei Ri Jing Ji Xin Wen·2025-08-22 14:27Core Viewpoint - Taihe Group's chairman and general manager, Huang Qisen, is under investigation for suspected illegal activities, leading to certain operational impacts on the company [1][3]. Company Situation - As of the announcement date, Taihe Group is facing asset freezes and seizures, which will affect its operations. However, the company continues to operate normally under its existing organizational structure and management system [3]. - The company has received an administrative penalty from the China Securities Regulatory Commission (CSRC) for failing to disclose significant litigation and for major omissions in its annual reports from 2020 to 2022. The penalties include a warning and a fine of 6 million yuan for Taihe Group, and fines for several individuals involved [6]. Financial Performance - In the 2024 annual report, Taihe Group reported an operating income of approximately 8.04 billion yuan, a year-on-year increase of 25.78%. However, the net loss attributable to shareholders was about 21.3 billion yuan, a year-on-year increase of 250.94% [12][14]. - The increase in losses is attributed to several operating entities being subject to bankruptcy reorganization or liquidation, significant investment losses due to asset auctions, and impairments in investment properties and inventory [12]. Historical Context - Taihe Group, founded by Huang Qisen, initially focused on the Fujian region and expanded into the Beijing luxury market, becoming a notable player in the real estate sector [8][9]. - The company experienced rapid growth from 2013 to 2017, achieving sales exceeding 100 billion yuan and expanding its project portfolio significantly [9][10]. - However, financial difficulties began to surface in 2020 when the company announced a default on its medium-term notes, marking the start of its decline [10][11].