Juewei Food (SH:603517) Xin Hua Ri Bao·2025-09-23 04:10Core Viewpoint - The company, Juewei Foods, has received a notice of administrative penalty from the Hunan Regulatory Bureau of the China Securities Regulatory Commission due to false financial disclosures in its annual reports, resulting in a total fine of 8.5 million yuan [1][5]. Financial Misconduct - From 2017 to 2021, Juewei Foods failed to recognize revenue from franchise store renovation services, leading to understated annual revenue by 5.48%, 3.79%, 2.20%, 2.39%, and 1.64% for the respective years [4]. - The company did not accurately disclose its operating income in annual reports during the aforementioned years, with evidence including contracts, bank statements, and inquiry records [4]. Responsible Personnel - The former chairman and general manager, Dai Wenjun, was aware of the management of franchise store renovation services but failed to regulate it properly, signing off on the annual reports from 2017 to 2021 [4]. - The former financial director, Peng Caigang, mismanaged the accounting for the renovation services and signed the annual reports from 2017 to 2019 [4]. - The former board secretary, Peng Gangyi, did not ensure proper information disclosure and signed the annual reports from 2017 to 2020 [4]. Penalties Imposed - The penalties include a warning and a fine of 4 million yuan for Juewei Foods, 2 million yuan for Dai Wenjun, 1.5 million yuan for Peng Caigang, and 1 million yuan for Peng Gangyi, totaling 8.5 million yuan [5]. Stock Trading Impact - Following the notice, Juewei Foods' stock will be subject to risk warnings, with its A-share name changing to "ST Juewei" starting September 23, 2025, and a trading halt on September 22, 2025 [7][8]. - After the risk warning implementation, the stock will trade on the risk warning board with a daily price fluctuation limit of 5% [8]. Company Performance - For the first half of 2024, Juewei Foods reported a revenue of 2.82 billion yuan, a year-on-year decrease of 15.57%, and a net profit attributable to shareholders of 175 million yuan, down 40.71% year-on-year [9].