TIK received the administrative regulatory measures decision from the Hunan Securities Regulatory Bureau
TIK recently received a decision on administrative regulatory measures from the Hunan Securities Regulatory Bureau for failing to disclose related party transactions with its controlling shareholder and for not prudently accruing inventory impairment provisions. Specific issues include undisclosed joint investments with Hunan Broadcasting and Television Group from 2021 to 2024, as well as the subsidiary Huafengda's failure to prudently accrue impairment provisions for film inventory
According to the Zhitong Finance APP, TIK (000917.SZ) announced that the company and relevant responsible persons recently received a decision from the Hunan Securities Regulatory Bureau regarding the administrative supervision measures of ordering corrections and issuing warning letters to relevant responsible personnel.
The announcement shows that during an on-site inspection of the company, the Hunan Securities Regulatory Bureau found the following issues: First, related party transactions were not disclosed. The company did not disclose the joint investment activities with its controlling shareholder, Hunan Broadcasting and Television Group Co., Ltd., in Shenzhen Dacheng Chuanghong Private Equity Investment Fund Enterprise (Partnership) and Shenzhen Dacheng Chuangcheng Private Equity Investment Fund Enterprise (Partnership) from 2021 to 2024. Second, the provision for inventory impairment was not prudently recognized. The subsidiary Huafengda Cable Network Holdings Co., Ltd. did not prudently recognize the impairment provision for certain film inventories at the end of 2021
