Shenzhen Changhong Technology shows strong compliance, but faces regulatory note

Citic Securities Co., Ltd. has issued its 2025 semi-annual follow-up report for Shenzhen Changhong Technology Co., Ltd., indicating no significant issues across various operational and governance aspects. The report, covering the first half of 2025, confirmed timely review of information disclosure documents and effective execution of internal regulations, including those concerning related-party transactions and internal controls. The company's compliance with established procedures for information disclosure, internal control frameworks, and "three meetings" (shareholder, board, and supervisory board) operations was found to be in order.

The report noted no material changes in controlling shareholders or actual controllers. Furthermore, monitoring of the company's raised funds revealed that project progress aligns with disclosed information, with monthly checks on dedicated accounts. No major problems were identified regarding related-party transactions, external guarantees, asset purchases/sales, or other business activities like external investments and financial assistance.

However, the report did mention that Shenzhen Changhong Technology received an administrative supervision decision from the Shenzhen Securities Regulatory Bureau for H1 2025. Citic Securities has urged the company to address and rectify the identified issues. All shareholder and company commitments, including those related to share circulation restrictions, competition avoidance, and tax/social security, were reported as being fulfilled.