Century Huatong shareholders Yaoruru, Yiqusheng, Jiyufan, and former controlling shareholder Huatong Holdings have been ordered by the Zhejiang Securities Regulatory Bureau to take corrective administrative measures and have been recorded in the securities and futures market integrity archives for failing to fulfill performance compensation and guarantee obligations related to a major asset restructuring in 2019. After subsidiary Shengqu Technology was penalized for inflating its 2020 revenue and profit, the adjusted net profit attributable to the parent after deducting non-recurring items was revised down from 2.986 billion yuan to 2.619 billion yuan, missing the performance commitment. According to the compensation agreement, Yaoruru should compensate approximately 77.68 million shares, Yiqusheng approximately 24.47 million shares, and Jiyufan approximately 24.47 million shares, with the three parties bearing joint and several liability, while Huatong Holdings provided additional guarantee for Yaoruru's compensation obligations. To date, only Jiyufan completed the share compensation in August 2025. Yaoruru and Yiqusheng have not fulfilled their compensation and guarantee obligations, Jiyufan has not fulfilled its guarantee obligations to the other compensating parties, and Huatong Holdings has not fulfilled its guarantee obligations to Yaoruru, constituting a violation.
Zhejiang Century Huatong Group Co LtdShareholders ordered to rectify for failing to fulfill performance compensation obligations, violating securities regulations.