outburst! Huabao shares announced that after the actual controller Zhu Linyao, his son Lin Jiayu was also filed for investigation

On the evening of January 27, Huabao Shares (300741. SZ) announced that on the afternoon of January 27, the company received a notice of filing a case from the Hengyang County Supervision Commission in Hengyang City, Hunan Province, and the county supervision commission decided to file an investigation into the illegality of the company's director Lin Jiayu. Subsequently, the company learned from Lin Jiayu's family that he is currently under residential surveillance in a designated place of residence by the Changsha County Public Security Bureau.

According to the announcement, Lin Jiayu is the son of Zhu Linyao, the actual controller of the Company, and also serves as the controlling shareholder of the Company, Huafeng International Investment Holdings (China) Co., Ltd. (hereinafter referred to as "Huafeng China") and its consistent actors, and the chairman and legal representative of Shanghai Xiangyue Technology Development Co., Ltd. (hereinafter referred to as "Xiangyue Technology"). Lin Jiayu does not directly hold shares in the company. The announcement said that as of now, with regard to the information held by the company, the company has not known whether Lin Jiayu's investigation involves corporate responsibility.

In addition, Huabao co., Ltd. stressed that Lin Jiayu's investigation and execution of residential surveillance at a designated residence will not directly lead to significant uncertainty in the ownership of the company's equity, nor will it directly affect the stability of the company's control. Since the company's listing, the company's capital management and guarantee behavior has been strictly implemented in accordance with the relevant provisions of the listed company, and after the company's self-examination, the company does not have any undisclosed litigation, capital occupation, illegal guarantee, bank account freezing, etc. As of January 27, the company's capital turnover is smooth, the operating income is stable, the financial work is being carried out in an orderly manner according to the company's system, and the financial external disclosure work can be disclosed in a timely and accurate manner. The production department produces and completes the delivery in a timely manner according to the order, and there is no situation that has a material adverse impact on the company's production operations due to the above matters.

On the same day, Huabao also announced a reply to the previous letter of concern from the Shenzhen Stock Exchange. According to the content of the reply draft, Huabao shares are Huabao International (0336. HK), a holding subsidiary of Hk), Huabao International indirectly holds a total of 81.1846% of Huabao's shares through Huafeng China and Xiangyue Technology, and there is no pledge of the relevant equity and other rights restrictions. As of January 27, Zhu Linyao's case filing and investigation is still in the stage of case filing and investigation, which will not directly lead to major uncertainty in the ownership of the company's equity held by him, nor will it directly affect the stability of the control of the listed company.

Huabao shares said that because Zhu Linyao did not hold any position in the company and did not participate in the company's operation and management, as of now, the company has assessed that her being investigated and being placed under residential surveillance in a designated place of residence will not have a significant adverse impact on the company's daily production and operation activities. Since the company learned of the relevant matters, it has held an emergency special meeting to make arrangements for production and operation, business management, etc., to ensure the normal operation and control of the company.

Regarding matters such as the Shenzhen Stock Exchange's requirement for the company to self-check whether there is insider trading, Huabao shares said that as of January 17, in addition to the company's director Lin Jiayu has not replied, the company's other directors, supervisors, senior management, shareholders holding more than 5% of the shares have not bought and sold the company's shares in the past month, and there is no insider trading. At the same time, the company inquired through the system of the Shenzhen branch of China Securities Depository and Clearing Co., Ltd., and the above-mentioned personnel and shareholders, including Lin Jiayu, did not buy and sell the company's shares. The Company has supplemented the insider information insider and self-examination report.

Previously, on January 23, Huabao announced that it had received a notice of filing a case from the Supervision Commission of Leiyang City, Hunan Province, and on January 26, Huabao said that it had learned from Zhu Linyao's family that Zhu Linyao had been placed under residential surveillance at a designated residence.