Solareast holdings, controlling shareholder receive regulatory warning for fund occupation

Solareast Holdings recently announced that it and its controlling shareholder, Sunrain Holdings Group Co., Ltd., along with chairman Xu Xinjian, general manager Wan Xuchang, cfo Xu Zhong, and former board secretary Ding Wei, received a warning letter from the Jiangsu Securities Regulatory Bureau.

The regulatory action stems from an investigation revealing that from April to December 2024, a subsidiary of Solareast Holdings, Tibet Solareast Akang Clean Energy Co., Ltd., provided loans totaling CNY 27.5863m to Tibet Longsheng Energy Management Co., Ltd., a subsidiary of Sunrain Holdings.

This action constituted non-operating fund occupation by the controlling shareholder and its related parties. Although the outstanding balance was fully repaid by the end of January 2025, Solareast Holdings failed to timely disclose these matters as required. This violates provisions of the "Administrative Measures on Information Disclosure by Listed Companies" and the "Regulatory Requirements for Capital Transactions and External Guarantees of Listed Companies."

The Jiangsu Securities Regulatory Bureau has mandated that the company, Sunrain Holdings, and the named individuals strengthen their understanding of securities laws and regulations, enhance operational compliance, and submit a written report within 10 working days. The company stated it takes the warning seriously, has fully repaid the occupied funds, and will strengthen internal controls to prevent future occurrences.