On November 17, 2025, the Inner Mongolia Regulatory Bureau issued an administrative penalty decision to Guoyuan Securities Co., Ltd. (000728). The investigation revealed that Inner Mongolia Xinhua Distribution Group Co., Ltd. improperly used raised capital to replace self-raised funds, including a RMB 50,000 deposit for a project and a RMB 385,000 final payment under a technical consulting contract. These expenditures did not qualify for replacement with raised capital.
As the lead underwriter for Inner Mongolia Xinhua Distribution Group’s IPO, Guoyuan Securities failed to identify these issues during its ongoing supervision, resulting in inaccurate verification reports. The violations pertain to: - Article 14 of the *Guidelines for the Administration of Raised Capital Management and Usage by Listed Companies* (CSRC Announcement [2022] No. 15), - Articles 5(1) and 28(4) of the *Measures for the Administration of Securities Underwriting and Sponsorship* (CSRC Order No. 170), - Article 45(1) of the *Measures for the Administration of Information Disclosure by Listed Companies* (CSRC Order No. 182).
The regulatory bureau imposed an administrative warning and recorded the violation in the securities market integrity archive. Guoyuan Securities must rectify its supervision practices, ensure proper use of raised capital by listed companies, and submit a written report within 30 days.
Founded in 1997 and headquartered in Hefei, Anhui, Guoyuan Securities specializes in capital market services under Chairman Shen Hefu. From 2023 to Q3 2025, its operating revenues were RMB 6.355 billion, RMB 7.848 billion, and RMB 4.071 billion, with net profits of RMB 1.869 billion, RMB 2.244 billion, and RMB 2.015 billion, respectively. Major shareholders’ stakes are available via Flush data.
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