Luokai Shares receives warning letter from Jiangsu regulator

Jiangsu Luokai Mechanical & Electrical (SSE:603829) has received a warning letter from the Jiangsu Securities Regulatory Bureau for failing to promptly disclose related-party transactions in 2021 and 2022. Specifically, the company did not timely disclose sales to Shanghai Electric Appliance People's Electric Appliance Factory totaling RMB 23.9968 million in 2021 and RMB 72.0522 million in 2022, as well as several other transactions with related entities. The regulator determined that these omissions violated information disclosure regulations, and has issued the warning to the company and related executives, including Chairman Tan Xing and Board Secretary Zang Yuanyuan. Luokai Shares has been instructed to submit a written report to the regulator within 10 days and says it will comply. The company states the warning will not impact production.