Xin Lang Cai Jing·2025-12-29 03:28Core Viewpoint - The article discusses the administrative penalties imposed by the China Securities Regulatory Commission (CSRC) on Hongda Xingye Co., Ltd. and its underwriter, First Capital Securities Co., Ltd., due to violations related to the issuance of convertible bonds in 2019, including misappropriation of funds and false disclosures [1][3][10]. Group 1: Administrative Penalties - First Capital Securities' subsidiary, First Capital Securities Underwriting and Sponsorship Co., Ltd., failed to perform due diligence during the ongoing supervision of Hongda Xingye's 2019 convertible bond project, leading to false records in supervisory documents [1][8][9]. - The CSRC's Jiangsu Regulatory Bureau ordered corrections, issued warnings, confiscated underwriting business income, and imposed fines on First Capital Securities and its representatives [1][9]. Group 2: Violations by Hongda Xingye - Hongda Xingye allegedly changed the use of raised funds without authorization, involving an amount of 1,691,280,000 yuan, with 69,000,000 yuan in 2019 and 1,622,280,000 yuan in 2020, primarily used by its controlling shareholder and related parties [3][10]. - The company’s annual reports from 2019 to 2022 and the semi-annual report for 2023 contained false records regarding the use of raised funds and financial performance, including inflated revenues and profits [3][10]. Group 3: Legal Actions and Investor Compensation - Due to the violations, affected investors are encouraged to register for compensation claims through legal representation, with specific conditions for eligibility based on their investment timeline [5][12]. - The compensation claims are based on the legal framework that holds companies and their executives accountable for damages caused by false statements, including investment losses and related costs [4][11].