Hui Chen Shares' actual controller, chairman, and general manager Zhao Long has been criminally detained by the Haidian Branch of the Beijing Public Security Bureau on suspicion of violating disclosure rules and failing to disclose important information. The company received notification from Zhao Long's family on July 16. The case is still under investigation. Currently, the board of directors and senior management team are performing their duties normally, and daily operations are running as usual. Zhao Long was previously fined 3 million yuan by the Beijing Securities Regulatory Bureau in 2023 for the company's information disclosure violations. The company's annual reports from 2020 to 2022 contained false records. As of the close on July 17, the company's stock price was 34.33 yuan, down 9.78 percent on the day, and has fallen more than 40 percent this year. The company has also reported losses for five consecutive years since 2021, with cumulative net losses of approximately 380 million yuan.
HCR Co LtdChairman criminally detained for disclosure violations; company has history of false records and fines.