On November 6, 2024, Haofeng Technology announced that it had received an Administrative Penalty Decision from the Beijing Regulatory Bureau. With the formal outcome of the penalty being issued, the investor compensation process related to the company's information disclosure violations has entered a new phase, and eligible investors are encouraged to follow up on subsequent legal actions as appropriate.
The Administrative Penalty Decision reveals that the Beijing Regulatory Bureau's investigation found that five "information system integration businesses" conducted by Haofeng Technology in 2020 with five entities lacked genuine transaction characteristics. In these transactions, the company essentially only performed a fund-advancement role and received a fixed return as agreed, with the business substance being fund financing rather than normal information system integration services. Regulators determined that these practices led to an inflated operating revenue of 73.1285 million yuan in 2020, accounting for 11.43% of that year's total revenue, and the related financial information failed to truthfully and accurately reflect the company's operational status.
Among those involved, the then-director and general manager, who was the primary organizer and executor of these transactions, was found to have intentionally concealed the true nature of the business and must bear corresponding legal responsibility. For these violations, the Beijing Regulatory Bureau imposed a warning and a fine of 3 million yuan on Haofeng Technology; a fine of 1.5 million yuan on the then-director and general manager; a fine of 1.5 million yuan on the then-chairman; and a fine of 800,000 yuan on the then-director, deputy general manager, and financial controller, to urge all responsible parties to fulfill their information disclosure obligations lawfully.
Although the company's controlling shareholder has changed, this administrative penalty pertains to historical events that occurred previously, and the related responsibilities and legal consequences must still be addressed according to the law. Based on the current progress of the case, investors who purchased Haofeng Technology shares between April 26, 2021, and December 27, 2023, and sold them after December 28, 2023, or continued to hold them and incurred losses, may actively learn about and participate in lawful claims as appropriate, with the final scope of claims subject to the court's determination.
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