Huarui received the administrative regulatory measures decision from the Ningbo Securities Regulatory Bureau
On May 23, 2025, Huarui received an administrative supervision decision from the Ningbo Securities Regulatory Bureau due to its failure to accurately disclose shareholding information in its prospectus and periodic reports. The decision pointed out that the behavior of the original actual controller Sun Ruiliang holding shares on behalf of others violated relevant regulations. The Ningbo Securities Regulatory Bureau decided to impose corrective supervision measures on the company and record it in the integrity file
According to the Zhitong Finance APP, Huarui (300626.SZ) announced that on May 23, 2025, it received the "Decision on Ordering Huarui Electric Co., Ltd. to Correct Violations" ([2025] No. 8) and the "Decision on Ordering Sun Ruiliang to Correct Violations" ([2025] No. 9) issued by the Ningbo Regulatory Bureau of the China Securities Regulatory Commission ("Ningbo Securities Regulatory Bureau"). The relevant content is as follows:
Among them, the main content of the "No. 8 Administrative Supervision Measure Decision" is: Upon investigation, on October 18, 2016, Sun Ruiliang, the original actual controller and then chairman of Huarui Electric Co., Ltd. (hereinafter referred to as the company), issued a "Share Ownership Certificate" to Chen Genhui, certifying that Sun Ruiliang held 3 million shares of the company on behalf of Chen Genhui. On June 5, 2018, the company completed the capital reserve conversion to increase share capital, and the shares held on behalf changed to 5.4 million shares. As of February 24, 2025, 1.8 million shares were still held on behalf by Sun Ruiliang. The matter of holding shares on behalf led to inaccurate disclosure of relevant shareholding information in the company's prospectus and periodic reports since its listing in 2017.
The above behavior violated Articles 4, 43, and 47 of the "Administrative Measures for the Initial Public Offering of Stocks and Listing" (CSRC Order No. 122), Articles 2 and 3 of the "Administrative Measures for Information Disclosure of Listed Companies" (CSRC Order No. 40), and the provisions of the first paragraph of Article 3 of the "Administrative Measures for Information Disclosure of Listed Companies" (CSRC Order No. 182).
According to Article 55 of the "Administrative Measures for the Initial Public Offering of Stocks and Listing" (CSRC Order No. 122), Article 59 of the "Administrative Measures for Information Disclosure of Listed Companies" (CSRC Order No. 40), and Article 52 of the "Administrative Measures for Information Disclosure of Listed Companies" (CSRC Order No. 182), the Ningbo Securities Regulatory Bureau decided to take supervisory measures to order the company to correct its violations and record it in the integrity file of the securities and futures market
