2022年1月17日

Taihe Group and Huang Qisen received a warning letter: did not timely disclose the termination of project cooperation, etc

On January 11, Fujian Securities Regulatory Bureau issued a warning letter to Thaihot Group Co.,Ltd. (000732.SZ) and Huang Qisen, chairman of Taihe Group.

Fujian Securities Regulatory Bureau found that Taihe Group had the following violations: failed to timely disclose the termination of project cooperation, failed to timely disclose and table the enterprise capital reduction matters and its progress, and released the value information based on insufficient information and did not release it in advance in the designated media.

Specifically, on February 8, 2021, Taihe Group signed cooperation termination agreements with relevant partners on Shanghai Xinjiangwan Project, Shenzhen Pingshan Project and Shanghai Gucun Project, which is expected to result in a loss of 420.92 million yuan (a loss of 567 million yuan in the 2020 annual report). Taihe Group did not disclose the above matters in a timely manner and did not disclose the Notice on Termination of Project Cooperation until March 31, 2021.

In addition, on December 21, 2020, Jiaxing Shengyu Equity Investment Partnership (limited partnership), an affiliated company of Taihe Group, held a meeting of all partners and agreed that Jiaxing Kun Yu Investment Co., LTD., a limited partner, would separately reduce its actual investment of 6.9 billion yuan. After the completion of the capital reduction, Jiaxing Sheng Yu was worth 6.9 billion yuan. On the same day, Jiaxing Kun Yu transferred its 6.9 billion yuan creditor’s rights to Jiaxing Shengyu to Zhongcheng Construction Co., LTD.

On December 31, 2020, Taihe Group, Zhongcheng Construction And Jiaxing Shengyu signed a tripartite agreement, stipulating that Jiaxing Shengyu should pay 6.9 billion yuan of Zhongcheng Construction by Taihe Group to Zhongcheng Construction, and set off 6.380 billion yuan of relevant creditor’s rights of Zhongcheng Construction in equal amount with Taihe Group. Taihe Group did not disclose the above capital reduction items and its progress until April 30, 2021 for the first time, which violates article 2 and Article 30 of the Measures for Information Disclosure.

In addition, on June 14, 2019, Huang Qisen, chairman of Taihe Group, said at a media meeting that Taihe Group had a land reserve worth 600 billion yuan; On August 4, 2021, The wechat official account of Taihe Group published an article saying that Taihe Group has land reserve worth nearly 400 billion yuan in the first and second tier cities; On August 6, 2021, Taihe Group said in an interview with Securities Daily that the company has 40 billion yuan worth of existing houses in Beijing, and chairman Huang Qisen said that the company has more than 300 billion yuan worth of land reserves in the core first-tier and second-tier cities. Taihe Group failed to provide the objective basis for making the above estimate, and the above publicly released relevant value information was not first released in the designated media, which violated Article 2 and Article 6 of the Measures for Information Disclosure and the Measures for The Management of Information Disclosure of Listed Companies.

Huang Qisen, as chairman, general manager and secretary of the board (acting) of Taihe Group, is mainly responsible for the above violations of Taihe Group. According to article 58 and Article 59 of the Measures for Information Disclosure, and Article 51 and Article 52 of the new Measures for Information Disclosure, Fujian Securities Regulatory Bureau decided to take administrative supervision measures of issuing a warning letter to Taihe Group and huang Qisen, chairman, general manager and secretary of the board of Directors (acting). We should fully learn lessons, strengthen the study of securities laws and regulations, improve the awareness of standardized operation, strengthen the management of information disclosure, earnestly fulfill the obligation of information disclosure, and ensure the truthfulness, accuracy and integrity of information disclosure.

The FUJIAN Securities Regulatory Bureau said that if it refuses to accept the supervision and management measures, it may apply for administrative reconsideration to the China Securities Regulatory Commission (CSRC) within 60 days from the date of receiving the written decision, or bring a lawsuit to the competent people’s court within 6 months from the date of receiving the written decision. During the period of reconsideration and litigation, the supervision and management measures mentioned above shall not be suspended.

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