The CSRC-related agencies plan to impose administrative penalties on Dongxu Group: 43 responsible parties will be fined a total of 1.7 billion yuan.

On March 28th, the Hebei Securities Regulatory Bureau issued an advance notice of administrative penalties for securities violations against Dongxu Optoelectronics Technology Co., Ltd. (referred to as Dongxu Optoelectronics, delisted) and its controlling shareholder Dongxu Group Co., Ltd. (referred to as Dongxu Group, bond issuer). On the same day, the Shenzhen Securities Regulatory Bureau issued an advance notice of administrative penalties for securities violations against Dongxu Blue Sky New Energy Co., Ltd. (referred to as Dongxu Blue Sky) and other relevant entities. The Hebei and Shenzhen Securities Regulatory Bureaus plan to impose a total fine of 1.7 billion yuan on 43 responsible parties, including Li Zhaoting, and impose securities market entry bans of five years or more, including lifetime bans, on 19 key personnel. The original text is as follows: China Securities Regulatory Commission's Relevant Branches to Issue Administrative Penalties for Securities Violations by Dongxu Group On March 28th, the Hebei Securities Regulatory Bureau issued an advance notice of administrative penalties for securities violations against Dongxu Optoelectronics Technology Co., Ltd. (referred to as Dongxu Optoelectronics, delisted) and its controlling shareholder Dongxu Group Co., Ltd. (referred to as Dongxu Group, bond issuer). On the same day, the Shenzhen Securities Regulatory Bureau issued an advance notice of administrative penalties for securities violations against Dongxu Blue Sky New Energy Co., Ltd. (referred to as Dongxu Blue Sky) and other relevant entities. According to the investigation, firstly, in 2017, Dongxu Optoelectronics did not meet the conditions for stock issuance, deceived for approval, and illegally raised 7.565 billion yuan; in 2018, Dongxu Group did not meet the conditions for corporate bond issuance, deceived for approval, and illegally raised 3.5 billion yuan. Secondly, from 2015 to 2019, Dongxu Group inflated its revenue by a total of 47.825 billion yuan, inflated its profit by 13.001 billion yuan, and inflated its cash by 44.79 billion yuan (the highest). Dongxu Optoelectronics inflated its revenue by 16.76 billion yuan and inflated its profit by 5.627 billion yuan. Thirdly, Dongxu Group and related entities non-operatively occupied cash from Dongxu Optoelectronics, Dongxu Blue Sky, with a total outstanding amount of 16.959 billion yuan. Fourthly, Dongxu Optoelectronics and Dongxu Blue Sky did not disclose their 2023 annual report on time. The Hebei and Shenzhen Securities Regulatory Bureaus plan to impose a total fine of 1.7 billion yuan on 43 responsible parties, including Li Zhaoting, and impose securities market entry bans of five years or more, including lifetime bans, on 19 key personnel. According to regulations, the relevant parties have the right to make statements, defenses, and request a hearing in accordance with the law. The Hebei and Shenzhen Securities Regulatory Bureaus will formally issue administrative penalty decisions after completing the regulatory enforcement procedures in accordance with the law. Currently, investigations into illegal practices by relevant intermediary agencies are ongoing. The Hebei and Shenzhen Securities Regulatory Bureaus will continue to urge the directors and senior management of Dongxu Optoelectronics and Dongxu Blue Sky to lawfully recover funds illegally occupied by Dongxu Group and related entities. For any securities crimes related to the violations, the evidence will be transferred to the public security organs in accordance with procedures. This article is selected from the "CSRC Announcement" public account, edited by GMTEight: Li Fo.