Xingyuan Environment(SZ:300266) Zheng Quan Zhi Xing·2025-05-12 13:31Core Viewpoint - The company has faced regulatory scrutiny and penalties over the past five years due to financial discrepancies and has implemented corrective measures to address these issues [1][2][4]. Recent Regulatory Actions and Corrections - The company was penalized by the China Securities Regulatory Commission (CSRC) for inflating revenue and profits in its 2016 financial reports, resulting in a fine of 2 million yuan and a warning to the company and its former financial director [1][4]. - The company has established a special rectification task force led by the chairman to address the issues identified in the regulatory actions and has begun a thorough review of its financial practices since May 2023 [2][5]. - The company has engaged a qualified accounting firm to verify the corrections made to its financial statements from 2016 to 2022, ensuring compliance with disclosure obligations [2][7]. Financial Discrepancies - The company reported inflated revenue of 90.63 million yuan and inflated profit of 22.02 million yuan in its 2016 financial statements, which led to significant discrepancies in its financial reporting from 2016 to 2022 [1][6]. - In 2021, the company initially forecasted a net profit of 10 million to 15 million yuan but later revised this to a loss of 35 million to 38 million yuan, prompting regulatory scrutiny for inaccurate disclosures [4][5]. Internal Control Enhancements - The company has committed to strengthening its financial management and internal audit processes, enhancing communication between departments, and improving its internal control systems to prevent future discrepancies [5][6]. - The former financial director has resigned, and a new financial director has been appointed to oversee the implementation of these improvements [7][8].