Sante Cableway announced after market close on September 18 that the company and five responsible persons, including former actual controller Ai Luming, had received an administrative penalty decision from the Hubei Securities Regulatory Bureau. For failing to promptly disclose non-operating fund occupation by related parties and for material omissions in its 2019 and 2020 annual reports, the company was given a warning and fined a total of 10.5 million yuan. Ai Luming was fined a total of 11 million yuan and banned from the securities market for life, while the other four responsible persons were fined a combined 11.4 million yuan. The investigation found that Dangdai Group is the indirect controlling shareholder of Sante Cableway. Since 2019, due to Dangdai Group's funding needs, Sante Cableway transferred funds to designated recipients and ultimately to Dangdai Group and its related and cooperative parties, creating non-operating fund occupation by related parties. Of this, the amount not disclosed in a timely manner from August to December 2020 was 340 million yuan, accounting for 31.89 percent of the most recent audited net assets. In 2021, the amount not disclosed in a timely manner reached 1.904 billion yuan, accounting for 131.67 percent, and in January 2022 the amount was 500 million yuan, accounting for 34.58 percent. Regarding annual reports, in 2019 Sante Cableway had non-operating fund occupation with Dangdai Group of 1.423 billion yuan, accounting for 133.49 percent of the net assets recorded in that year's annual report, and in 2020 the amount was 370 million yuan, accounting for 25.59 percent. The company failed to disclose these matters in its 2019 and 2020 annual reports, resulting in material omissions in both reports. The Hubei Securities Regulatory Bureau determined that Ai Luming repeatedly asked the company to provide financial support to Dangdai Group from 2020 to 2022, and that he instigated the company's information disclosure violations. His conduct was egregious, the violations were serious, and he had previously been subject to a securities market ban. Among the other responsible persons, then chairman Lu Sheng was warned and fined 3 million yuan, then chairman and president Zhang Quan was warned and fined 4.1 million yuan, then director and president Wang Lili was warned and fined 2.1 million yuan, and then chief accountant Zhang Yunyun was warned and fined 2.2 million yuan. The fund occupation was not disclosed in relevant announcements until April 30, 2022, and by April 2022 the company had fully recovered the occupied funds and interest from Dangdai Group. Sante Cableway said the company has not triggered mandatory delisting for major violations, nor has it triggered other risk warning conditions. It has already made provision for the fine, and its production and operating activities are currently normal.
Wuhan Sante Cableway Group Co LtdSante Cableway fined 10.5 million yuan and warned by Hubei Securities Regulatory Bureau for failing to disclose related-party fund occupation and material omissions in its 2019 and 2020 annual reports.
As indirect controlling shareholder, Dangdai Group's funding needs drove the undisclosed non-operating fund occupation; former actual controller Ai Luming was fined 11 million yuan and banned from the securities market for life.
