Sante Cableway received an administrative penalty decision from the Hubei Securities Regulatory Bureau because it failed to disclose non-operating fund occupation by related parties in a timely manner and because its 2019 and 2020 annual reports contained major omissions. The company was fined a total of 10.5 million yuan, while former actual controller Ai Luming was fined a total of 11 million yuan and banned from the securities market for life. The Hubei Securities Regulatory Bureau determined that since 2019, due to the funding needs of its indirect controlling shareholder Dangdai Group, Sante Cableway transferred funds to receiving entities designated by Dangdai Group, and the funds were ultimately transferred to Dangdai Group and its related parties and partners, forming non-operating fund occupation by related parties. From August 3, 2020 to December 2020, the company failed to disclose in a timely manner transferred funds of 340 million yuan, accounting for 31.89 percent of the most recent audited net assets. In 2021, it failed to disclose in a timely manner transferred funds of 1.904 billion yuan, accounting for 131.67 percent of the most recent audited net assets. In January 2022, it failed to disclose in a timely manner transferred funds of 500 million yuan, accounting for 34.58 percent of the most recent audited net assets. In 2019, non-operating fund occupation with Dangdai Group amounted to 1.423 billion yuan, accounting for 133.49 percent of the net assets recorded in the 2019 annual report, with a year-end occupation balance of zero. The above fund occupation was not disclosed until April 30, 2022 in the reply to a letter of concern, and by April 2022 the company had fully recovered the occupied funds and interest from Dangdai Group. The Hubei Securities Regulatory Bureau determined that Ai Luming, as the actual controller at the time, repeatedly demanded that Sante Cableway provide financial support to Dangdai Group, constituting an actual controller directing illegal conduct, and that the information disclosure violations involved lasted for four years. Lu Sheng, the chairman at the time, knew of and participated in approving and signing the relevant matters, did not stop or report them in a timely manner during the process, and afterwards allowed the violations to continue and recur, with no mitigating circumstances. He was given a warning and fined 3 million yuan. Sante Cableway stated that it has already made provision for the fine, and the impact of this matter has been reflected in its 2026 semi-annual report. Production and operations are currently normal, and the above matter will not have a material impact on the company's production and operations.
Wuhan Sante Cableway Group Co LtdSante Cableway fined 10.5 million yuan by Hubei Securities Regulatory Bureau for failing to disclose related-party non-operating fund occupation and major omissions in its 2019-2020 annual reports.
Former actual controller Ai Luming, tied to Contemporary Group, was fined 11 million yuan and banned from the securities market for life over the undisclosed fund occupation by Dangdai Group.
