Wuhan Sante Cableway Group Co Ltd

Sante Cableway received an administrative penalty decision from the Hubei Securities Regulatory Bureau because it failed to disclose non-operating fund occupation by related parties in a timely manner and because its 2019 and 2020 annual reports contained major omissions. The company was fined a total of 10.5 million yuan, while former actual controller Ai Luming was fined a total of 11 million yuan and banned from the securities market for life. The Hubei Securities Regulatory Bureau determined that since 2019, due to the funding needs of its indirect controlling shareholder Dangdai Group, Sante Cableway transferred funds to receiving entities designated by Dangdai Group, and the funds were ultimately transferred to Dangdai Group and its related parties and partners, forming non-operating fund occupation by related parties. From August 3, 2020 to December 2020, the company failed to disclose in a timely manner transferred funds of 340 million yuan, accounting for 31.89 percent of the most recent audited net assets. In 2021, it failed to disclose in a timely manner transferred funds of 1.904 billion yuan, accounting for 131.67 percent of the most recent audited net assets. In January 2022, it failed to disclose in a timely manner transferred funds of 500 million yuan, accounting for 34.58 percent of the most recent audited net assets. In 2019, non-operating fund occupation with Dangdai Group amounted to 1.423 billion yuan, accounting for 133.49 percent of the net assets recorded in the 2019 annual report, with a year-end occupation balance of zero. The above fund occupation was not disclosed until April 30, 2022 in the reply to a letter of concern, and by April 2022 the company had fully recovered the occupied funds and interest from Dangdai Group. The Hubei Securities Regulatory Bureau determined that Ai Luming, as the actual controller at the time, repeatedly demanded that Sante Cableway provide financial support to Dangdai Group, constituting an actual controller directing illegal conduct, and that the information disclosure violations involved lasted for four years. Lu Sheng, the chairman at the time, knew of and participated in approving and signing the relevant matters, did not stop or report them in a timely manner during the process, and afterwards allowed the violations to continue and recur, with no mitigating circumstances. He was given a warning and fined 3 million yuan. Sante Cableway stated that it has already made provision for the fine, and the impact of this matter has been reflected in its 2026 semi-annual report. Production and operations are currently normal, and the above matter will not have a material impact on the company's production and operations.

Sante Cableways released its 2026 interim report. Total operating revenue was 288 million yuan, down 1.60% year-on-year. Net profit attributable to the parent company was 53.8875 million yuan, down 20.22% year-on-year. Net cash inflow from operating activities was 73.3408 million yuan, down 9.68% year-on-year. The company's asset-liability ratio was 20.56%, gross margin was 60.85%, achieving growth for two consecutive years, and ROE was 3.69%. Diluted earnings per share was 0.30 yuan, down 21.05% year-on-year. Total asset turnover was 0.15 times, and inventory turnover was 11.45 times. The number of shareholders was 12,500, and the top ten shareholders held 56.09% of the total share capital.

Sante Cableways released its 2026 interim report, showing first-half net profit attributable to the parent of 53.89 million yuan, down 20.2% year on year. Operating revenue was 288 million yuan, down 1.6%; net profit attributable to the parent after deducting non-recurring items was 64.07 million yuan, down 4.8%; net operating cash flow was 73.34 million yuan, down 9.7%; and earnings per share were 0.30 yuan. In the second quarter, operating revenue was 152 million yuan, down 5.6% year on year, and net profit attributable to the parent was 33.21 million yuan, down 11.1%. As of the end of the second quarter, total assets were 1.904 billion yuan, up 0.4% from the end of the previous year, and net assets attributable to the parent were 1.462 billion yuan, up 0.03%. The company said it continues to focus on integrated development and operation of tourism resources, with cableways as its main development path, and that operations at multiple projects remain normal, including Mount Hua in Shaanxi, Mount Fanjing in Guizhou, and Monkey Island in Hainan.

Ai Luming, the former richest man in Hubei and former head of Dangdai Group, was criminally detained by the Wuhan Public Security Bureau on July 8, 2026, on suspicion of illegally absorbing public deposits. His defense lawyer, Lan He, said that two meeting requests since July 23 have been blocked. Ai Luming started his career by collecting urine from public toilets to extract urokinase, gradually building a hundred-billion-level Dangdai conglomerate spanning pharmaceuticals, finance, and real estate. At its peak, it held stakes in multiple listed companies such as Humanwell Healthcare and Tianfeng Securities. In 2021, Dangdai Group's debt crisis erupted, and in 2024 it entered bankruptcy restructuring with liabilities as high as 80.6 billion yuan. A subsidiary of China Merchants Group participated in the restructuring with 11.8 billion yuan, and control of Humanwell Healthcare has changed hands. Regulatory investigations show that Dangdai Group accumulated non-operational occupation of 12.785 billion yuan of Humanwell Healthcare's funds and over 4 billion yuan of Sante Cableways' funds, while Tianfeng Securities illegally provided over 8.5 billion yuan in financing for Dangdai Group. Ai Luming was successively fined over 10 million yuan and banned from the securities market for life. This criminal detention mainly targets the comprehensive default of targeted financing products issued by Changzhongsuo under the Dangdai conglomerate, with the suspected illegally absorbed public deposits amounting to approximately 4.8 billion yuan, and the flow of funds still to be investigated.