Yuancheng(SH:603388) Guo Ji Jin Rong Bao·2025-07-02 13:39Core Viewpoint - *ST Yuancheng has been placed under investigation by the China Securities Regulatory Commission (CSRC) for suspected false disclosures in its annual reports and other periodic financial statements, which may lead to a forced delisting if significant violations are confirmed [1][10]. Financial Performance - The company has experienced a significant decline in revenue and net profit from 2020 to 2024, with revenues dropping from 5.97 billion yuan in 2020 to 1.46 billion yuan in 2024, and net profits turning from a profit of 925.31 million yuan in 2020 to a loss of 3.25 billion yuan in 2024 [5]. - In Q1 2024, the company reported revenues of 36.01 million yuan, a year-on-year increase of 25.34%, but the net loss expanded to 25.32 million yuan compared to a loss of 22.46 million yuan in the same period last year [6]. Regulatory Issues - The company has faced multiple regulatory warnings and has been under scrutiny for discrepancies in its financial reporting, including a significant error in the reported revenue for Q4 2024, which was later corrected [7]. - The actual controller and major shareholder, Zhu Changren, has also been implicated in failing to disclose shareholding changes and other related issues [8]. Delisting Risks - The company is at high risk of delisting due to potential violations of financial reporting regulations, with its stock already under risk warning since May 6, 2024, due to financial indicators that meet the criteria for mandatory delisting [10][11]. - As of July 2, 2023, 23 companies have been identified as facing delisting, with *ST Yuancheng being one of them due to significant violations and financial issues [10].