Huayang group's controlling shareholder fined by CSRC for fund misuse

Shanxi Huayang Group New Energy Company Limited announced that its controlling shareholder, Huayang New Materials Technology Group Co., Ltd., received an administrative penalty decision from the CSRC Shanxi Regulatory Bureau. The penalty stems from Huayang Group's unauthorized occupation of CNY 1,126,449,959.33 from Yang Quan Coal Industry Co., Ltd. (now Shanxi Lu'an Chemical Technology Co., Ltd.) between April and June 2021. This led to false, inaccurate, and incomplete disclosures in Lu'an Chemical Technology’s 2021 semi-annual and annual reports.

The CSRC fined Huayang Group CNY 4 million, with additional fines of CNY 2 million for Gao Yanqing and CNY 900,000 for Fan Zongli, who were deemed directly responsible for the violations. The company clarified that this penalty solely targets the controlling shareholder and related individuals, not Shanxi Huayang Group New Energy Company Limited itself, and will not affect its daily operations.

Separately, Shanxi Huayang Group New Energy Company Limited will hold a 2025 semi-annual performance briefing on September 17, 2025, via online interaction.