Jiangsu Securities Regulatory Bureau issued a combined penalty of 38.4 million yuan against Suzhou Kelida Decoration Co., Ltd. and its then chairman, general manager, and chief financial officer, according to a September 24 evening announcement.
Investigations revealed that from January 2020 to December 2022, Kelida and its subsidiary Kehuasheng Urban Architectural Planning and Design Co., Ltd., without substantive business operations, transferred funds under the guise of labor services or project prepayments through intermediaries to the bank accounts of controlling shareholder Kelida Group, then chairman Gu Yiming, and other related parties. This resulted in non-operational fund occupation by related parties totaling 1.7028 billion yuan, constituting related-party transactions.
Kelida failed to timely disclose the aforementioned non-operational fund occupation by related parties. It also failed to disclose the fund occupation in its annual reports from 2020 to 2023 as required, leading to major omissions in those periodic reports. Furthermore, it did not truthfully disclose the fund occupation in its 2024 annual report and 2025 semi-annual report, resulting in false records in those periodic reports.
Jiangsu Securities Regulatory Bureau decided to order Suzhou Kelida Decoration Co., Ltd. to rectify, issue a warning, and impose a fine of 9 million yuan. Then chairman Gu Yiming received a warning and a fine of 16.2 million yuan, including 4.2 million yuan in his capacity as chairman and 12 million yuan as actual controller. Then director and chief financial officer Sun Zhenhua received a warning and a fine of 3.8 million yuan. Then director and executive director of Kelida Group Gu Longdi received a warning and a fine of 3.8 million yuan. Then supervisor and head of finance at Kelida Group Zhu Yi received a warning and a fine of 3.5 million yuan. Then director and general manager Lu Chongming received a warning and a fine of 2.1 million yuan.
Kelida's actual controller Gu Yiming organized and implemented the fund occupation of Kelida by related parties, and organized and instigated Kelida to engage in the aforementioned information disclosure violations, constituting illegal circumstances under the Securities Law involving organization and instigation by an actual controller. The Jiangsu Securities Regulatory Bureau decided to impose a 5-year securities market ban on Gu Yiming.
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