Huarui Co., Ltd. (300626.SZ) announced that Sun Ruiliang, the shareholder of the company holding more than 5% of the shares, and Zhang Yijun, related personnel, recently...
Zhitong Finance App News, Huarui Co., Ltd. (300626.SZ) announced that Sun Ruiliang, a shareholder holding more than 5% of the company's shares, and Zhang Yijun, recently received the “Decision on Ordering Corrective Measures against Sun Ruiliang and Zhang Yijun” (Administrative Supervision Measures Decision [2023] No. 35) issued by the Ningbo Regulatory Bureau of the China Securities Regulatory Commission. The relevant information is now announced as follows:
“Sun Ruiliang and Zhang Yijun: You signed a “Share Transfer Agreement” with Wuzhou Dongtai Asset Management Co., Ltd. (Wuzhou Dongtai for short) in September 2020 to transfer the controlling interest in Huarui Electric Co., Ltd. (Huarui Shares for short) to Wuzhou Dongtai. At the same time, you promise that the net profit achieved by the company's current business (current business for short) in 2021, 2022, and 2023 will not be less than 25 million yuan, 30 million yuan, and 45 million yuan respectively, for a total of not less than 10 million yuan, and that the net cash flow from operating activities for the year audited in the 2021, 2022, and 2023 annual reports disclosed in 2021, 2022, and 2023 will not be less than the net profit for the current year. If Huarui Co., Ltd. lost money in 2020 or if the net profit of the existing business did not meet the promised performance in any year during the performance promise period, you should pay cash compensation to the company.
According to the “Audit Report on the Implementation of Performance Commitments” (Dahua Approval [2023] No. 0011380) issued by Dahua Certified Public Accountants (Special General Partnership), Huarui Co., Ltd.'s current business finally achieved net profit of 22,188,948.33 yuan in 2022, which failed to complete the 2022 promised performance. According to the “Equity Transfer Agreement”, you are required to reimburse Huarui Co., Ltd. in cash of 7,811,051.67 yuan. As of the date this decision was issued, you have not fulfilled the corresponding performance compensation promises as agreed. The above matters constitute a breach of commitment as described in section 15 of the “Guidelines for the Supervision of Listed Companies No. 4:11 Listed Companies and Related Party Commitments” (Securities Regulatory Commission Notice [2022] No. 16). According to the provisions of Article 17 of the “Guidelines for the Supervision of Listed Companies No. 4:11 Listed Companies and Related Party Commitments” (Securities Regulatory Commission Notice [2022] No. 16), our bureau has decided to take administrative supervision measures to order corrections against you and record the above relevant information in the securities and futures market integrity file. You should strictly abide by relevant laws and administrative regulations and submit a rectification report to our bureau within one month. The rectification report should include a clear performance compensation plan and time.