On the evening of June 18, Holitech announced it had received a "Notice of Administrative Penalty" from the Fujian Securities Regulatory Bureau. Regulatory investigations revealed multiple violations in financial information disclosure between 2017 and 2021. According to findings, the company improperly handled financial data in relevant years by adjusting revenue, under-provisioning for inventory write-downs, and miscalculating goodwill impairment.
Specifically, from 2017 to 2019 and in 2021, the company inflated total profits by approximately 1.87 billion yuan; in 2020, total profits were understated by about 895 million yuan. The Fujian regulator plans to order Holitech to rectify the issues, issue a warning, and impose a fine of 9 million yuan. Additionally, eight responsible individuals face combined fines of 24.75 million yuan.
With the regulatory probe results becoming clearer, the administrative penalties provide supporting evidence for subsequent civil claims by investors. Currently, the legal team led by lawyer Liu Peng of Shanghai Huzi Law Firm has received registration applications from thousands of investors, with litigation materials being prepared and filed progressively.
Regarding these violations, the company previously stated the issues stem from problems left by the original actual controller prior to judicial reorganization. However, from an investor perspective, pursuing civil compensation claims under the law is a viable option if investment losses result from the listed company's unlawful information disclosure.
Under current claim conditions, investors who purchased Holitech shares between April 24, 2018 and April 28, 2025, and still held them at the close of trading on April 28, 2025, and incurred losses, may register for claims. It is important to note that investors must have actual purchase records within the specified timeframe. Whether compensation is ultimately granted and the final amounts will depend on elements such as regulatory determinations and trading circumstances.
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