Summary by Futu AI
United States Retail Holdings Limited (“US Retail”) announces that Mr. Song Lin Lin, Executive Director, and Ms. Dong Xiaohung, Non-Executive Director, have received the “Advance Notice of Administrative Penalties and Market Impeachment” issued by the China Securities and Exchange Commission against them and others. The notice relates to a violation of disclosure rules by U.S. Communications Equipment Co., Ltd. (ST), in which U.S. Retail holds a 28.34% interest in ST. The notice pointed out that ST News reported false information in 2020 and that private dividends were made based on false information in 2021, alleging fraudulent issuance of shares. Mr. Song and Ms. Dong were found to be negligent and fined RMB3,000,000 and $2,000,000, respectively, and banned from the market for ten years and an unspecified year. American Retail said that the incident will not have a material impact on the Group's operations or financial condition and that the relevant director duties will be considered based on the outcome of the case. Shareholders and investors should act with caution.