Sante Cableway announced on the evening of September 18 that the company and its former actual controller Ai Luming and others received an Administrative Penalty Decision from the Hubei Securities Regulatory Bureau that day. Due to failure to promptly disclose non-operating capital occupation by related parties and material omissions in the 2019 and 2020 annual reports, the company and responsible persons were fined a total of 32.9 million yuan. The Hubei Securities Regulatory Bureau found that since 2019, due to the capital needs of indirect controlling shareholder Dangdai Group, Sante Cableway transferred funds to receiving entities designated by Dangdai Group, forming non-operating capital occupation by related parties. Among these, from August to December 2020, the company failed to promptly disclose transferred funds of 340 million yuan, accounting for 31.89 percent of the most recent audited net assets; in 2021, it failed to promptly disclose 1.904 billion yuan, accounting for 131.67 percent; and in January 2022, it failed to promptly disclose 500 million yuan, accounting for 34.58 percent. In 2019, non-operating capital occupation between the company and Dangdai Group amounted to 1.423 billion yuan, accounting for 133.49 percent of net assets recorded in the 2019 annual report; in 2020, the amount was 370 million yuan, accounting for 25.59 percent of net assets recorded in the 2020 annual report. These matters were not disclosed until April 30, 2022, in a reply announcement, and by April 2022 the occupied funds and interest had been fully recovered. The Hubei Securities Regulatory Bureau determined that Ai Luming constituted the actual controller who instigated the information disclosure violations, and decided to fine him 11 million yuan and impose a lifetime ban from the securities market. The company was warned and fined 10.5 million yuan; Lu Sheng was warned and fined 3 million yuan; Zhang Quan was warned and fined 4.1 million yuan; Wang Lili was warned and fined 2.1 million yuan; and Zhang Yunyun was warned and fined 2.2 million yuan. Sante Cableway stated that the company has already accrued the fine expense, that production and operating activities are currently normal, and that the above matters will not have a material impact on the company's production and operations.
Wuhan Sante Cableway Group Co LtdSante Cableway and its former controller were fined 32.9 million yuan by the Hubei Securities Regulatory Bureau for failing to disclose related-party non-operating capital occupation and material omissions in its 2019-2020 annual reports.
As the indirect controlling shareholder whose capital needs drove the undisclosed related-party fund transfers, Contemporary Group is central to the disclosure violations that triggered the penalties.
