PSR Tech(SH:688565) Mei Ri Jing Ji Xin Wen·2025-07-29 15:08Core Viewpoint - The company, Liyuan Technology, is facing significant governance issues following the conviction of its actual controller, Shen Wanzhong, for the crime of disclosing important information in violation of regulations, leading to his resignation and the nomination of his daughter as a new board member [2][8]. Group 1: Legal and Governance Issues - Shen Wanzhong was sentenced to one year in prison, with a one and a half year probation, and fined 3.3 million yuan for violating information disclosure laws [2][8]. - Following his conviction, Shen Wanzhong submitted his resignation from the positions of chairman and director of the company, and will not hold any other positions within the company [2][8]. - The board of directors has approved the nomination of Shen Jiawen, Shen Wanzhong's daughter, as a candidate for a non-independent director position [2][8]. Group 2: Company Background and Operations - Liyuan Technology specializes in the research, design, and integration of water treatment systems for various industries, including nuclear power, thermal power, metallurgy, and chemicals [4]. - The company has developed core technologies for hydrogen fuel cell engine systems and has achieved commercial delivery of several products [4]. - Liyuan Technology is one of the few suppliers capable of providing condensate water treatment systems for nuclear power units, including the domestically developed "Hualong One" nuclear power project [4]. Group 3: Financial Misconduct and Regulatory Actions - The company was previously found to have engaged in financial misconduct, including premature revenue recognition and misreporting of research and development expenses [5][6]. - In 2023, the China Securities Regulatory Commission initiated an investigation into Liyuan Technology for suspected violations of information disclosure laws, leading to penalties and fines for the company and its executives [6][8]. - The company was ordered to correct its practices and was fined 3 million yuan, while Shen Wanzhong and other executives received individual fines and warnings [6][8].