On October 25, the Shanghai Stock Exchange recently issued a decision on publicly condemning Gansu Ronghua Industrial (Group) Co., Ltd., the controlling shareholder Wuwei Ronghua Industry and Trade Group Co., Ltd., the related party Wuwei Ronghua New Agricultural Co., Ltd. and relevant responsible persons.
It was found that the company provided a large amount of guarantees to the controlling shareholders and their related parties, but failed to perform the decision-making procedures of the board of directors and the shareholders' general meeting in accordance with the requirements of the rules, nor did it fulfill the information disclosure obligations in a timely manner. The relevant guarantee debt has been overdue and involves litigation, and the company needs to bear the liability for repayment, which may lead to the company suffering significant losses, but the company has not disclosed the follow-up guarantee overdue and the progress of the litigation matters in a timely manner, which affects the reasonable expectations of investors.
The SSE made the following disciplinary decision: Gansu Ronghua Industrial (Group) Co., Ltd. and its controlling shareholder, Wuwei Ronghua Industry and Trade Group Co., Ltd., its related party Wuwei Ronghua New Agricultural Co., Ltd., the company's then chairman and general manager Liu Yong, the then secretary of the board of directors Xin Yongqing, and the then financial director Li Qinghua were publicly reprimanded.
![Liu Yong is also a descendant of the orthodox Han clan, why is he so unbeaten?[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)