Core Viewpoint - A small private equity firm with an unclear business address has incurred significant losses after receiving a 60 million investment from a subsidiary of Shengyuan Environmental Protection, leading to a dramatic decline in fund value over nine months [2][3]. Group 1: Investment Details - Shengyuan Environmental Protection's wholly-owned subsidiary, Xiamen Jinlingji Construction Engineering Co., Ltd., invested 60 million in the "Deep Bo Hongtu Growth No. 1 Private Securities Investment Fund" in March 2025 [3]. - The fund's net value plummeted from 0.9215 yuan per unit on December 4, 2025, to 0.2596 yuan per unit by December 11, 2025, marking a decline of over 70% within a week [4]. - As of December 25, 2025, the fund's unit net value had further decreased to 0.1846 yuan, resulting in a cumulative loss of approximately 46.92 million, or 81.54% [3]. Group 2: Fund Management and Operations - The "Deep Bo Hongtu Growth No. 1 Private Securities Investment Fund" is managed by Shenzhen Deep Bo Xin Investment Management Co., Ltd., and is classified as an R4-level medium-high risk product [3]. - Concerns have been raised regarding the fund's abnormal net value fluctuations, suggesting potential internal risk control failures and possible violations of disclosure obligations by the fund manager [5]. Group 3: Regulatory and Legal Actions - Following the discovery of the fund's severe losses, Shengyuan Environmental Protection engaged in discussions with the fund manager, who proposed that an individual, Wen Tingtao, would assume joint liability for the investment losses [5]. - The fund manager has been accused of unauthorized trading and falsifying fund net value information, while the custodian, China Merchants Securities, has been criticized for failing to fulfill supervisory duties [5][6]. - The Xiamen Securities Regulatory Bureau issued a warning letter to Shengyuan Environmental Protection for failing to disclose significant losses in a timely manner [7]. Group 4: Company Background and Concerns - Shenzhen Deep Bo Xin Investment Management Co., Ltd. was established in May 2014 and has a registered capital of 10 million, with a management scale of only 0-500 million [8]. - The firm has been previously listed as a "lost contact" entity by the Asset Management Association of China, raising questions about its credibility and operational transparency [8][9].

Core Insights - The "2025 Hainan Private Enterprises Top 100" and "2025 Hainan Private Enterprises R&D Investment Top 20" lists were released, showcasing the strong development capabilities of Hainan's private sector [3][4] - The total revenue of the top 100 private enterprises reached 346.79 billion yuan in 2024, with an average revenue of 3.468 billion yuan per enterprise, reflecting a year-on-year growth of 10.35% [3][4] - The R&D investment of the top 20 enterprises surpassed 4 billion yuan, reaching 4.166 billion yuan, with an average R&D intensity of 15.31%, indicating a robust commitment to innovation [4] Group 1: Top 100 Private Enterprises - The entry threshold for the top 100 private enterprises increased to 299 million yuan, with 6 companies reporting revenues exceeding 10 billion yuan [3][4] - The top 100 enterprises span 35 industries, with a significant presence in manufacturing, which accounts for 36% of the list, highlighting the sector's role as a core support for the real economy [3][4] Group 2: R&D Investment Top 20 - The entry threshold for the R&D investment top 20 reached 52.34 million yuan, with total R&D expenses growing by 10.71% year-on-year [4] - The top 20 enterprises demonstrated solid operational performance, with total assets and revenue increasing by 12.79% and 21.59% respectively [4] Group 3: Economic Contribution - In the first three quarters of the year, Hainan's private economy contributed 338.63 billion yuan, representing a year-on-year growth of 4.2%, accounting for nearly 60% of the province's GDP and over 90% of employment positions [4]

Core Viewpoint - Shengyuan Environmental Protection (300867.SZ) is facing dual challenges of financial losses from investment mismanagement and regulatory accountability due to delayed disclosures regarding significant risks [1][3]. Group 1: Financial Losses - The company’s wholly-owned subsidiary invested 60 million yuan in a high-risk private fund, which resulted in a loss of 46.92 million yuan over nine months, equating to an 81.54% decline in value [1]. - The fund's net value plummeted from 0.9215 yuan to 0.2596 yuan within a week, marking a 74.04% drop [1]. - By December 25, the net value further decreased to 0.1846 yuan, leading to cumulative losses exceeding 10% of the company's most recent audited annual net profit [1]. Group 2: Regulatory Accountability - The company received a warning from the Xiamen Securities Regulatory Bureau and a regulatory letter from the Shenzhen Stock Exchange for failing to disclose the significant losses in a timely manner [3]. - The regulatory bodies highlighted that the company did not announce the losses until December 26, violating information disclosure regulations [3]. - The company's chairman, general manager, and board secretary were held primarily responsible for the disclosure failures, leading to the issuance of warning letters [3]. Group 3: Compensation and Legal Actions - The controlling shareholders committed to compensating for the investment losses, promising to cover the difference between the initial investment and any recovered amounts [4]. - A legal team has indicated that investors who purchased shares between December 15 and December 26, 2025, and sold or still hold them can seek compensation [5]. - The company is expected to face civil liability for damages caused to investors due to false statements, as per securities law [4].

Core Viewpoint - The case of Shengyuan Environmental Protection highlights a significant investment failure where a subsidiary lost 81.54% of a 60 million yuan investment in a private equity fund within nine months, resulting in a loss of nearly 47 million yuan, serving as a cautionary tale for risk management in investment practices [1][9]. Group 1: Investment Timeline and Initial Performance - From February to March 2025, Shengyuan Environmental's subsidiary, Xiamen Jinlingji Construction Engineering Co., Ltd., invested 60 million yuan in the "Shenbo Hongtu Growth No. 1 Private Securities Investment Fund," which had a risk rating of R4 (medium-high risk), indicating a mismatch with the company's intention for stable financial management [2][11]. - Initial reports from the fund manager, Shenzhen Shenbo Xintou Investment Management Co., Ltd., indicated a minor loss of about 8% until December 4, 2025, creating a false sense of security [4][13]. Group 2: The Unraveling of the Investment - The true crisis emerged after Shengyuan Environmental submitted a redemption request on December 9, 2025, leading to a dramatic drop in the fund's net value by 73% within a week, ultimately resulting in an 81.54% loss by December 25, 2025 [4][13]. - Investigations revealed that the fund manager had been fabricating net values and engaging in unauthorized trading, while the custodian, China Merchants Securities, failed to detect or prevent these violations [5][14]. Group 3: Reasons Behind the Losses - Three critical failures contributed to the substantial losses: 1. The fund manager's malicious violations, including concentrated investments in specific stocks and leveraging, which violated basic risk control principles [5][14]. 2. The custodian's ineffective supervision, which allowed the fund manager's fraudulent activities to go unchecked [6][16]. 3. The investor's inadequate risk management, as Shengyuan Environmental misallocated funds intended for stable investments into high-volatility products and relied solely on the manager's reports without independent verification [6][16]. Group 4: Lessons and Warnings - The Shengyuan Environmental case serves as a critical educational example for investors and fund-of-funds (FOF) professionals in selecting private equity managers and products, emphasizing the importance of assessing both the individuals and strategies involved [7][17]. - Key considerations for selecting private equity include evaluating governance, ownership structure, and the effectiveness of risk management systems, alongside quantitative performance analysis to distinguish between luck and skill in investment outcomes [7][17].

Core Viewpoint - The company and its three core executives failed to disclose significant losses from a subscribed private equity product in a timely manner, leading to warnings from regulatory bodies. The controlling shareholders committed to compensating for the investment losses to protect the company's and shareholders' interests [1][21]. Group 1: Financial Losses and Fund Performance - The company invested 60 million yuan in a private equity product, which reported a net value growth rate of -81.54%, resulting in a loss of approximately 46.92 million yuan, including 2 million yuan recovered from the fund manager [6][11]. - The fund's net value plummeted from 0.9215 yuan per share on December 4, 2025, to 0.2596 yuan per share by December 11, 2025, indicating a loss of nearly 72% in just seven days [10][11]. - By December 25, 2025, the fund's net value further declined to 0.1846 yuan per share, reflecting a cumulative loss of nearly 80% within 21 days [11][21]. Group 2: Regulatory and Legal Actions - The company reported the fund manager's potential violations, including unauthorized trading and failure to disclose critical information, leading to significant losses. Legal actions have been initiated against the fund manager and the fund custodian [12][21]. - The company has filed a report with the police and the China Securities Regulatory Commission regarding the incident, indicating the seriousness of the situation [12][21]. Group 3: Shareholder Commitments and Future Actions - The controlling shareholders, Zhu Yuxuan and Zhu Hengbing, pledged to compensate for the investment losses, with the final compensation amount to be determined after accounting for any recovered funds [21][22]. - The company is in the process of pursuing legal remedies against the fund manager and custodian, highlighting the ongoing complexity of the case and the need for thorough investigation [21][22].

Core Viewpoint - The incident involving Shengyuan Environmental Protection's significant loss from a private equity investment has raised concerns, leading to warnings for the company and its executives, while the actual controller has promised to cover the losses [1]. Group 1: Company Response - The company has stated that it was unaware of the false net value reports received by investors [2]. - The company has conducted a thorough investigation and confirmed that it fulfilled its custodial responsibilities according to regulations and contracts [2]. - The company emphasized that the management is responsible for accurate and truthful disclosure of product net value information, and the custodian does not have the means to directly reach investors [2]. Group 2: Investment Details - Shengyuan Environmental Protection's wholly-owned subsidiary, Xiamen Jinlingji, invested 60 million yuan in a private equity fund, which has since reported an 81.54% loss, amounting to approximately 46.92 million yuan [4]. - The fund's net value plummeted from 0.9215 yuan to 0.2596 yuan within a week, revealing the net value fraud during the redemption process [4]. - The cumulative net value growth rate deteriorated from -7.85% to -74.04%, indicating a severe decline in the fund's performance [4].

Core Viewpoint - The article discusses the significant losses incurred by Shengyuan Environmental Protection due to its investment in a private equity product, which resulted in an 81% loss, leading to scrutiny of the company and its executives [2][4]. Group 1: Incident Overview - Shengyuan Environmental Protection invested 60 million yuan in a private equity product managed by Shenzhen Shenboxin Investment Management Co., which has seen a drastic decline in value [8]. - The latest unit net value of the fund was reported at 0.1846, reflecting a cumulative net value growth rate of -81.54%, resulting in a loss of approximately 46.92 million yuan, exceeding 10% of the company's most recent audited net profit [8]. Group 2: Responses from Stakeholders - The company stated that it had verified the situation by obtaining complete asset valuation reports and transaction details from the fund manager and custodian, revealing violations such as unauthorized trading and falsification of net value information [4]. - The custodian, China Merchants Securities, claimed it had fulfilled its responsibilities according to regulations and contracts, including account opening, clearing, valuation review, and investment supervision [4][5]. Group 3: Disclosure and Accountability - The responsibility for disclosing net value information lies with the fund manager, and the custodian was unaware of the authenticity of the net value reports received by investors until contacted [5][6]. - The custodian emphasized that it could not monitor commitments made between the fund manager and investors outside the fund contract [6].

Core Viewpoint - The responsibility dispute between the custodian and investors regarding the significant losses incurred by Shengyuan Environmental Protection's investment in a private equity fund is escalating [1]. Group 1: Fund Performance and Losses - Shengyuan Environmental Protection's investment in the "Shenbo Hongtu Growth No. 1 Private Securities Investment Fund" has resulted in substantial losses, with the latest unit net value at 0.18 and a cumulative net value growth rate of -81.54%, amounting to a loss of approximately 46.92 million yuan, which exceeds 10% of the company's most recent audited net profit for the fiscal year [2]. Group 2: Allegations and Responses - Shengyuan Environmental Protection has accused the fund manager, Shenzhen Shenbo Xintou Investment Management Co., Ltd. ("Shenbo Xintou"), of unauthorized trading and net value falsification, while also directing criticism towards the custodian, China Merchants Securities, for failing to fulfill its supervisory obligations [3][4]. - China Merchants Securities has denied the allegations, stating that it has complied with regulatory and contractual obligations in its role as custodian, including strict supervision of investment ratios and leverage violations. The custodian claims it had already issued warnings regarding the abnormal operations of the product [5]. Group 3: Legal Proceedings and Investigations - The incident has entered both criminal and administrative regulatory procedures, with Shengyuan Environmental Protection determined to pursue legal avenues to recover losses. China Merchants Securities has expressed its intention to cooperate with relevant parties and reserves the right to pursue legal action against false accusations [7].

Group 1 - The core issue revolves around a significant loss incurred by a private investment product linked to Shengyuan Environmental Protection, with a reported net value growth rate of -81.54% over nine months, resulting in a loss of approximately 46.92 million yuan [2][3] - China Merchants Securities confirmed that the involved product is classified as a high-risk R4 level investment with no stop-loss provisions, and they have fulfilled their responsibilities regarding account opening, settlement, valuation review, and investment supervision as per regulations [2] - The company stated that it was unaware of the authenticity of the net value report prior to the investigation and found that materials provided by investors had been tampered with, indicating a lack of oversight regarding external commitments [2] Group 2 - Shengyuan Environmental Protection's subsidiary, Xiamen Jinlingji Construction Engineering Co., Ltd., invested 60 million yuan of idle funds into the private fund product, which has led to substantial financial losses [2] - Following the discovery of the losses, Shengyuan Environmental Protection did not disclose the information in a timely manner, raising concerns about transparency [2]

Core Viewpoint - Shengyuan Environmental Protection (300867.SZ) has reported significant losses from its investment in the "Shenbo Hongtu Growth No. 1 Private Securities Investment Fund," leading to legal actions and regulatory scrutiny due to alleged misconduct by the fund manager and custodian [1][5][6]. Group 1: Investment Details - The company’s wholly-owned subsidiary, Xiamen Jinlingji Construction Engineering Co., Ltd., invested RMB 60 million in the Shenbo Hongtu Growth No. 1 Private Securities Investment Fund [1]. - The fund is classified as R4 level (medium-high risk) and is managed by Shenzhen Shenboxin Investment Management Co., Ltd. with custody by China Merchants Securities Co., Ltd. [1]. Group 2: Fund Performance - As of December 11, 2025, the fund's unit net value dropped sharply from RMB 0.9215 to RMB 0.2596, reflecting a cumulative net value growth rate decline from -7.85% to -74.04% [3]. - By December 25, 2025, the latest unit net value was RMB 0.1846, with a cumulative net value growth rate of -81.54%, resulting in a loss of approximately RMB 46.92 million, exceeding 10% of the company's most recent audited net profit [3]. Group 3: Investigation and Legal Actions - Upon discovering the significant losses, the company established a special task force to investigate the matter and registered insider information [4]. - The fund manager proposed that an individual, Wen Tingtao, would bear joint liability for the principal loss, but only a partial payment of RMB 2 million has been received to date [4]. - The company has reported the situation to law enforcement and the China Securities Regulatory Commission, and is considering legal action against both the fund manager and custodian [5][6]. Group 4: Regulatory Response - The company received a warning letter from the Xiamen Securities Regulatory Bureau for failing to disclose the investment losses in a timely manner, with specific individuals within the company being held accountable for not fulfilling their duties [6][7]. - China Merchants Securities stated that they had fulfilled their custodial responsibilities according to regulations and that the fund's investment documents had been tampered with [7].