SUNSEA(SZ:002313) Nan Fang Du Shi Bao·2025-05-16 15:49Core Viewpoint - The Shanghai Securities Regulatory Bureau has imposed an administrative penalty on Lixin Certified Public Accountants for violations in the audit report of Huahong Jitong's 2017 annual report, marking a repeated offense for the firm [1][4][6]. Group 1: Violations by Lixin Certified Public Accountants - Lixin Certified Public Accountants issued an audit report for Huahong Jitong's 2017 annual report that contained false records due to fictitious trades and underreporting of bad debt provisions [4][5]. - The firm failed to exercise due diligence during the audit process, overlooking significant discrepancies in the sales and receivables processes, and did not obtain sufficient appropriate audit evidence [5][6]. Group 2: Penalties Imposed - The Shanghai Securities Regulatory Bureau ordered Lixin to correct its practices, confiscated business income of 518,867.92 yuan, and imposed a fine of 1,037,735.84 yuan, totaling 1,556,000 yuan [6]. - The responsible auditors, He Mou Chun and Wan Mou Ling, received warnings and were fined 50,000 yuan each [6]. Group 3: Previous Offenses - In December 2024, Lixin was penalized by the Shenzhen Securities Regulatory Bureau for similar violations related to the audit of Rihai Intelligent, resulting in a total penalty exceeding 11 million yuan [7][8][12].