LiuGong Ordered to Rectify Related-Party Disclosure Lapses; Three Executives Face Regulatory Talks
Guangxi securities regulator ordered LiuGong (000528) to rectify its failure to timely review and disclose related-party transactions with Bank of Liuzhou during January-March 2026, in violation of listed company information disclosure rules. Chairman Zheng Jin, President Luo Guobing and Board Secretary Huang Hualin were subjected to regulatory interview measures and recorded in the securities and futures market integrity archive. The company must submit a written rectification report within 30 days. The related-party status arose after Guangxi Guokong Capital Operation Group acquired 80% of LiuGong Group and subsequently 67.44% of Bank of Liuzhou.
The Guangxi Securities Regulatory Bureau has imposed administrative supervision measures requiring LiuGong (000528) to rectify its failure to timely review and disclose related-party transactions with Bank of Liuzhou Co. , Ltd. during January-March 2026, in violation of the Administrative Measures for Information Disclosure of Listed Companies. The regulatory decision requires LiuGong to attach high importance to the issue, take effective corrective measures, and submit a written rectification report within 30 days of receiving the decision.
LiuGong Chairman Zheng Jin, President Luo Guobing and Board Secretary Huang Hualin bear primary responsibility for the violations. The Guangxi Securities Regulatory Bureau imposed regulatory interview measures on the three individuals and recorded them in the securities and futures market integrity archive. The individuals are required to appear at the bureau's office at 10:00 on August 14 with valid identification for regulatory interviews.
In July 2025, the Guangxi State-owned Assets Supervision and Administration Commission transferred 80% of Guangxi LiuGong Group Co. equity to Guangxi Guokong Capital Operation Group Co. without compensation. Guokong Group thereby indirectly holds LiuGong shares through LiuGong Group and became LiuGong's indirect controlling shareholder. Under Shenzhen Stock Exchange rules, legal persons directly or indirectly controlled by Guokong Group passively became related parties of LiuGong. Recently, Guokong Group received approval to acquire 67.44% of Bank of Liuzhou and became its controlling shareholder, making Bank of Liuzhou a passive related party of LiuGong.
Related director Zheng Jin abstained from voting, while non-related directors participated in the vote, and the motion passed unanimously. LiuGong held supplementary board and shareholder meetings in April and May to complete ratification and disclosure of the matter.