Wire flash
China's *ST Lida fined 38.4 mln yuan for fund misappropriation and disclosure violations
Editorial responsibility
- No named human review is recorded for this page.
- Source reporting is collected, normalized, translated or condensed automatically when needed.
- Automatically published source-backed update
Jiangsu Securities Regulatory Bureau has imposed a total fine of 38.4 million yuan (approximately $5.4 million) on Suzhou柯利达Decoration Co., Ltd. (stock ticker: *ST Lida) and several of its current and former executives for severe violations of securities laws. The investigation revealed that between January 2020 and December 2022, the company and its subsidiary transferred approximately 1.7 billion yuan to the controlling shareholder and related parties through fake labor or project prepayment accounts, constituting undisclosed related-party transactions and non-operational fund occupation. The company failed to disclose these transactions in its annual reports from 2020 to 2023, resulting in material omissions, and provided false information in its 2024 and 2025 semi-annual reports. The regulator fined the company 9 million yuan, former chairman Gu Yiming 16.2 million yuan (including 12 million yuan as the actual controller), and other executives between 2.1 million and 3.8 million yuan. Gu Yiming was also banned from the securities market for five years for organizing and directing the violations.
Source report
September 24 — The Jiangsu Securities Regulatory Bureau has imposed a total fine of 38.4 million yuan on Suzhou柯利达 Decoration Co., Ltd. (stock abbreviation: *ST Lida), along with its then-chairman, general manager, and financial controller, for serious violations of securities laws.
Key Findings
An investigation revealed that from January 2020 to December 2022,柯利达 and its subsidiary, Kehuasheng City Architectural Planning and Design Co., Ltd., transferred funds to the bank accounts of its controlling shareholder,柯利达 Group, and then-chairman Gu Yiming, under the guise of labor or project advance payments, through an intermediary. These transactions lacked genuine business substance and resulted in non-operational fund occupation by related parties totaling 1,702,820,200 yuan. The conduct constituted related-party transactions.
Disclosure Violations
柯利达 failed to:
- Timely disclose the aforementioned non-operational fund occupation by related parties.
- Properly disclose the fund occupation in its annual reports from 2020 to 2023, resulting in material omissions in those periodic reports.
- Accurately disclose the fund occupation in its 2024 annual report and 2025 semi-annual report, leading to false records in those reports.
Penalties Imposed
The Jiangsu Securities Regulatory Bureau decided as follows:
- Suzhou柯利达 Decoration Co., Ltd.: Ordered to rectify, issued a warning, and fined 9 million yuan.
- Gu Yiming (then-chairman): Issued a warning and fined 16.2 million yuan — 4.2 million yuan for his role as chairman and 12 million yuan as the actual controller.
- Sun Zhenhua (then-director and financial controller): Issued a warning and fined 3.8 million yuan.
- Gu Longdi (then-director and executive director of柯利达 Group): Issued a warning and fined 3.8 million yuan.
- Zhu Yi (then-supervisor and head of finance at柯利达 Group): Issued a warning and fined 3.5 million yuan.
- Lu Chongming (then-director and general manager): Issued a warning and fined 2.1 million yuan.
Market Ban
Gu Yiming, as the actual controller of柯利达, was found to have organized and directed the fund occupation and the subsequent information disclosure violations, constituting illegal conduct under the Securities Law. The bureau imposed a 5-year market ban on Gu Yiming.
Editor: Chen Yuyao | Reviewer: Li Zhen | Supervisor: Gu Zheng
Source
大河财立方Eastern
Part of this Story
China Regulator Fines *ST Lida and Executives $5.4 Million for Disclosure Violations