Recently disclosed administrative supervision measures by the Shanghai Securities Regulatory Bureau show that Huawen Futures, a subsidiary of the listed company Xinhuangpu, has been suspended from accepting new asset management business for six months, with several responsible individuals receiving warning letters.

The primary violations include: 1. Selling asset management plans without proper qualifications (using institutions/personnel without fund sales qualifications and employees without fund practice certifications). 2. Improperly guaranteeing returns, providing deficiency guarantees, and making external margin payments. 3. Allowing external personnel to actually control and make decisions for asset management plans. 4. The asset management department charging fees through consulting services and participating in brokerage business. 5. Submitting inaccurate self-inspection reports. 6. Failing to rectify adequately after a 2022 order to correct, constituting a severe circumstance.

Other recent penalties include: • 2025-12-01 (Hubei Securities Regulatory Bureau): A warning letter issued to the Wuhan branch; employing unqualified personnel for live market analysis broadcasts and internal control failures in online marketing. • 2025-01-08 (Shanghai Securities Regulatory Bureau): Ordered to correct; misleading promotional content in internet marketing, insufficient compliance monitoring, and inadequate record-keeping. • 2024-04-23 (Shanghai Securities Regulatory Bureau): Ordered to correct; unqualified employees publishing investment advice, incomplete marketing records, and insufficient controls.