Liren Lizhuang announced that due to a divorce property dispute, 10 million shares held by the company's actual controller Huang Tao were judicially auctioned and all sold, with a total transaction amount of 59.18 million yuan. The auction stemmed from Huang Tao's failure to fulfill obligations under an effective legal document in the divorce dispute case, leading the court to order the auction of his shares. The auction was split into minimum units of 1 million shares. If the transfer is completed, Huang Tao's shareholding ratio will drop to 25.78%. The company stated that this matter will not lead to a change in control or affect daily operations. In addition, the company was recently ordered by the Shanghai Securities Regulatory Bureau to rectify violations including failure to disclose that it had advanced 4.8 million yuan in legal fees for Huang Tao's divorce case, and Huang Tao and five other senior executives were issued warning letters.
Shanghai Lili & Beauty Cosmetics Co LtdCompany ordered to rectify violations for failing to disclose legal fee advances, and actual controller faces share auction due to divorce dispute.