Liren Lizhuang has been ordered by the Shanghai Bureau of the China Securities Regulatory Commission to rectify failures in reviewing and disclosing external guarantees, related-party transactions, and fund occupation. Six executives were simultaneously issued warning letters. Investigations found that between December 2017 and January 2022, the company provided external guarantees to help multiple suppliers obtain bank loans without required review and disclosure. Since 2019, the company failed to identify its related-party relationship with Shanghai Maipeng and did not disclose related-party transactions. Between 2021 and 2024, the company also failed to review and disclose 4.8 million yuan in legal fees paid for actual controller Huang Tao, constituting non-operational fund occupation. The regulator determined that six current and former executives—Huang Tao, Huang Mei, Li Aili, Ye Mao, Xu Ding, and Du Hongpu—failed to perform their duties diligently and bear responsibility for information disclosure violations during their respective tenures. In accordance with relevant provisions of the Information Disclosure Management Measures, warning letters were issued to all six. In the first quarter of 2026, Liren Lizhuang achieved revenue of 415 million yuan and net profit attributable to the parent company of 10.34 million yuan.
Shanghai Lili & Beauty Cosmetics Co LtdCSRC ordered rectification for external guarantee violations, related-party transaction failures, and fund occupation; six executives received warning letters.