On March 30, battery dealer Liwang Co., Ltd. (BJ920627) announced that the company received an administrative penalty decision issued by the Dongguan Municipal Urban Management and Comprehensive Law Enforcement Bureau on March 26. In 2004, Shiliwang Co., Ltd. built houses without obtaining the "Construction Project Planning Permit" and was now fined 231,900 yuan.
According to the commitment letters previously issued by the actual controllers of the company, Li Weihai and Wang Hongqi, they fully compensated the above fines to the company's account through bank transfer on March 28, with each person bearing 50%.
Liwang Co., Ltd. stated that this administrative penalty is a penalty accepted by the company in accordance with the "Dongguan City Implementation Plan for Renewal of Real Estate Rights for Illegal Buildings with Historical Legacy Industries and Public Supporting Types" and in the process of resubmitting the formalities for illegal buildings with historical legacy and will have no significant impact on the company's daily operations.
Paying for illegal construction at the beginning of this century
The penalty decision shows that the company built three reinforced concrete buildings (2 industrial plants and 1 employee dormitory) at No. 10 Liantangjiao 2nd Road, Tangxia Town, Dongguan City without obtaining a planning permit, with a total building base area of 2,194.02 square meters and a total construction area of 7,731.45 square meters. The construction of the above-mentioned building started in 2004 and was completed and put into use between 2004 and 2005.
According to regulations, the relevant departments ordered the company to complete the procedures within a time limit and imposed a fine of 5% of the construction project cost, which is a fine of 231,900 yuan.
The announcement shows that the company’s actual controllers Li Weihai and Wang Hongqi issued a letter of commitment on June 16, 2023, promising that if the listed company is subject to administrative penalties by the competent authorities due to the lack of legal ownership certificates and/or complete construction application procedures for houses and buildings, it will compensate the listed company for all losses incurred thereby.
On March 28, Li Weihai and Wang Hongqi fully compensated the above-mentioned fines to the company account through bank transfer, and Liwang Co., Ltd. paid the fine in full to the Dongguan Municipal Urban Management and Comprehensive Law Enforcement Bureau on March 30.
He has been punished several times for past illegal construction activities.
Liwang Shares has been subject to administrative penalties many times since 2023 due to problems left over from its land and real estate history.
In November 2023, the listed company received two administrative penalty decisions.
First, on November 2, 2023, Liwang Co., Ltd. received the "Administrative Penalty Decision of Dongguan Urban Management and Comprehensive Law Enforcement Bureau". Because the listed company did not obtain the "Construction Project Planning Permit" and built three buildings (two factories and one dormitory) between 2011 and 2012, it was fined 8.5% of the construction project cost, amounting to 1.8501 million yuan. The company paid in full on November 3, 2023. Li Weihai and Wang Hongqi compensated for the above-mentioned fine losses on May 20, 2024.
On November 29, 2023, Liwang Co., Ltd. received the "Administrative Penalty Decision of Dongguan Municipal Natural Resources Bureau". Since 2011, the company has been constructing a factory on the land at No. 10, Liantangjiao 2nd Road, Tangxia Town, Dongguan City without legal approval, and it was completed and put into use in 2012. The actual land area occupied by the above behavior was 4809.3 square meters (7.21 acres), and Liwang Co., Ltd. was fined approximately 91,200 yuan. The company will pay in full on November 29, 2023. Li Weihai and Wang Hongqi also compensated for the above-mentioned fine losses on May 20, 2024.
In December 2024, the company faced tax penalties again. On December 12 this year, Liwang Shares received a "Tax Matters Notice" issued by the Tangxia Taxation Branch of the Dongguan Municipal Taxation Bureau of the State Administration of Taxation. Since 2011, a listed company has occupied garden land for construction without legal approval and needs to pay back farmland occupation tax of approximately 215,400 yuan and incurred late payment fees, totaling 430,700 yuan. The company has paid all farmland occupation taxes and late payment fees in full on December 16, 2024. Soon after, Li Weihai and Wang Hongqi compensated the late payment penalty for the above-mentioned fine (approximately 215,400 yuan).
To sum up, Liwang Co., Ltd. has paid more than 2.6 million yuan in various fines due to previous illegal construction activities.
Liwang Co., Ltd. emphasized in most relevant announcements about the above-mentioned penalties that the relevant penalties are penalties accepted by the company in accordance with the "Dongguan City Implementation Plan for Renewal of Real Estate Rights for Illegal Buildings with Historical Legacy Industries and Public Supporting Types" in the process of re-registering the formalities for illegal buildings with historical legacy and will have no significant impact on the company's daily operations.
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