A view of Hikvision's stand during the Shanghai Security Expo held in May. Photo: VCG

Security equipment maker Hikvision Corp said on Thursday that it will undergo an information disclosure review in accordance with China's regulatory requirements, after two board members were probed on alleged illicit information disclosure.

China Securities Regulatory Commission (CSRC), the regulator of securities sector, is looking into irregularities involving the two board members, while not the company, a spokesperson of Hikvision told the Global Times.

Hikvision's stock price closed at 33.37 yuan ($4.76) on Thursday, down 2.46 percent, bringing its total market value to 311.8 billion yuan. 

Two Hikvision board members, Hu Yangzhong and Gong Hongjia, were investigated by the CSRC on suspicion of illegal information disclosure on Monday, according to a brief press release from the company.

By the end of the third quarter of 2019, Gong was the largest natural-person shareholder of Hikvision, holding nearly1.26 billion shares, or 13.43 percent of the company's stocks. Hu is the second-largest natural-person shareholder, holding 182 million shares, or 1.95 percent.

"Hikvision performs information disclosure obligations strictly in accordance with regulatory requirements," said the spokesperson.

A person familiar with the case said the issue was related to disclosures surrounding a bonus plan for Hikvision employees. Gong and Hu offered incentives to employees, but did not disclose the act to the market. 

According to a previous Hikvision announcement, some 2,936 people were granted equity on December 23, 2016, as part of the company's bonus plan. The grant price was 12.63 yuan per share, though the closing price on that day was 23.26 yuan on the secondary market. 

The total number of shares granted was more than 52 million, accounting for 0.86 percent of the total share capital before the grants, according to the company's press release. 

Hikvision has more than 34,000 employees in 2019, more 16,000 of whom are research and development technicians and engineers.

Hikvision was founded in 2001 and listed on the Shenzhen stock exchange in 2010. After 18 years of development, the company has become the leading provider of security products and solutions in the global industry. 

The company was placed on a blacklist by the US Department of Commerce on October 8, and the company ceased stock trading in the A-share market the following day.