Sierte(SZ:002538) Mei Ri Jing Ji Xin Wen·2025-09-29 13:24Core Viewpoint - The company Si Er Te (002538.SZ) is facing serious legal issues involving former executives who are accused of embezzlement and fraudulent activities, which may significantly impact its operations and financial standing [2]. Summary by Relevant Sections Legal Issues - The company has received a notice regarding the transfer of a case for prosecution, indicating that former executives are under investigation for long-term embezzlement of substantial assets from the company and its wholly-owned subsidiary [2]. - Specific allegations include fabricating urea procurement transactions to misappropriate company funds, creating fictitious organic fertilizer sales to reclaim some funds, and fraudulently obtaining government subsidies [2]. - The company has also been implicated in the crime of issuing false VAT invoices, which adds to the severity of the legal challenges it faces [2]. Criminal Charges - The local public security bureau has determined that the evidence against the former executives is clear and sufficient, leading to the case being forwarded to the local people's procuratorate for further prosecution [2].