Shenyang Chemical (SZ:000698) Zheng Quan Ri Bao Zhi Sheng·2025-10-10 04:41Core Points - Shenyang Chemical Co., Ltd. will have its stock subjected to other risk warnings starting October 10, following a notice from the Liaoning Securities Regulatory Bureau regarding administrative penalties for financial misconduct [1][5][6] - The company has been found to have manipulated financial data over multiple years, leading to significant discrepancies in reported profits [2][3] Financial Misconduct - The Liaoning Securities Regulatory Bureau's notice indicates that Shenyang Chemical's financial reports from 2018 to 2021 contained false records due to deliberate adjustments rather than simple errors [2][3] - The company reported inflated profits of CNY 130 million, CNY 204 million, and CNY 104 million for the years 2018 to 2020, which represented 80.44%, 29.40%, and 19.14% of the respective reported profits [3] - In 2021, the company reported a reduced profit of CNY 148 million, accounting for 70.11% of the reported profit for that year [3] Regulatory Actions - The company and responsible individuals have received a warning and proposed fines totaling CNY 7 million, with specific penalties for key executives ranging from CNY 100,000 to CNY 3.5 million [5][6] - Proposed sanctions include an 8-year market ban for the former chairman and a 5-year ban for the former chief accountant [6] Company Performance and Impact - Shenyang Chemical has faced poor performance in recent years, with cumulative losses of CNY 678 million since its listing, although it reported a profit of CNY 62.42 million in the first half of this year [7] - The risk warning will significantly impact the company's stock trading, limiting daily price fluctuations to 5% and excluding it from financing options, which may lead to a loss of investor confidence and increased operational challenges [7]