Core Viewpoint - Dezhong Automobile has received an administrative regulatory decision from the Hunan Securities Regulatory Bureau due to multiple violations, leading to warnings for its chairman and secretary [1][3]. Group 1: Regulatory Violations - The company failed to follow the required procedures for related party transactions and disclosure obligations, involving transactions with two companies controlled by its actual controller [1][2]. - The actual controller, Duan Kunliang, occupied non-operating funds amounting to 3.9 million yuan from December 2024 to July 2025 without timely disclosure [2]. - There were significant internal control deficiencies in the subsidiary's procurement operations, with direct arrangements made by the actual controller bypassing established procedures [2]. - Financial accounting was found to be non-compliant, with underreported revenues and employee compensation due to improper payment methods [2]. Group 2: Regulatory Actions and Company Response - The Hunan Securities Regulatory Bureau has mandated corrective actions and issued warnings to Duan Kunliang and the company secretary, requiring a written report on rectifications within three months [3]. - The company has committed to enhancing compliance with securities laws, improving internal controls, and ensuring all procurement follows standardized procedures [3]. - All misappropriated funds totaling 6.55 million yuan have been recovered, and the company plans to strengthen its financial management systems [3]. Group 3: Company Background and Financial Performance - Dezhong Automobile reported a revenue of 1.765 billion yuan for the first three quarters of 2025, a year-on-year increase of 7.3%, but a net loss of 8.05 million yuan, a decline of 275.67% [7]. - The company specializes in automobile sales, after-sales maintenance services, and related value-added services, and was established in February 2010 [7].