Core Viewpoint - The announcement from First Capital indicates that its wholly-owned subsidiary, Yi Chuang Investment Bank, has received a notice of administrative penalty from the Jiangsu Securities Regulatory Bureau for failing to fulfill its duties during the continuous supervision of Hongda Xingye's 2019 convertible bond project [2][4]. Group 1: Regulatory Actions - Jiangsu Securities Regulatory Bureau claims that Yi Chuang Investment Bank did not diligently verify the use and repayment of raised funds during the supervision period, leading to false records in related documents [4]. - The bureau plans to impose a total penalty of 16.9811 million yuan on Yi Chuang Investment Bank, along with warnings and fines of 1.5 million yuan each for two responsible individuals [4]. - The company has stated that it will learn from this case, accept the penalties, and enhance its operational quality and compliance [4]. Group 2: Company and Market Impact - First Capital asserts that the operational status of both the company and Yi Chuang Investment Bank remains normal, and the proposed penalties will not significantly impact their business activities, financial condition, or debt repayment capabilities [4]. - Hongda Xingye was delisted in March 2024 due to triggering "face value delisting" conditions, with its stock and convertible bonds now traded in the National Equities Exchange and Quotations system [4]. - The convertible bond, known as "Hongda Tui Zhai," defaulted in June 2024, drawing market attention [4]. Group 3: Previous Violations - In June 2025, Jiangsu Securities Regulatory Bureau previously penalized Hongda Xingye for three violations, including unauthorized changes to the use of raised funds and false records in financial reports [5].