Hylink(SH:603825) Zhong Guo Ji Jin Bao·2025-09-11 00:49Core Viewpoint - The Shanghai Stock Exchange has publicly reprimanded Huayang Lianzhong Digital Technology Co., Ltd. and its former controlling shareholder, actual controller, and then Chairman and General Manager Su Tong, along with then Vice General Manager, Financial Officer, and Board Secretary Guo Jianjun for violations related to financial data manipulation and non-disclosure of significant financial information [1][2][4]. Group 1: Violations Identified - The company failed to disclose non-operating fund occupation by its controlling shareholder and actual controller, leading to significant omissions in its periodic reports. In 2021, Huayang and its wholly-owned subsidiary provided a total of 181.53 million yuan to Su Tong, which constituted non-operating fund occupation, not disclosed in the 2021 semi-annual and annual reports, representing 10.02% and 7.84% of the net assets disclosed at that time [5]. - The company also underreported bad debt provisions for accounts receivable, resulting in inflated profit figures. The 2021 annual report overstated total profit by 17.3296 million yuan, accounting for 6.72% of the reported total profit, while the 2022 annual report inflated total profit by 69.3931 million yuan, increasing the percentage to 10.31% [6]. Group 2: Accountability and Consequences - The Shanghai Stock Exchange has determined that Su Tong, as the former controlling shareholder and actual controller, was responsible for organizing and arranging the non-operating fund occupation and the underreporting of bad debt provisions. Guo Jianjun was aware of these issues and failed to fulfill his responsibilities, leading to their public reprimand [7]. - The disciplinary action will be reported to the China Securities Regulatory Commission and the Beijing Local Financial Supervision Bureau, and will be recorded in the securities and futures market integrity database [7].