Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued a notice of administrative penalty against *ST Yuancheng for falsifying financial data over three consecutive years, leading to significant fines and potential delisting from the Shanghai Stock Exchange [2][3]. Summary by Sections Administrative Penalties - *ST Yuancheng is facing a fine of 37.45 million yuan for its financial misconduct, with an additional total of 42 million yuan in fines for five responsible individuals [2][3]. - The actual controller, Zhu Changren, is subject to a 10-year ban from the securities market due to the severity of the violations [3]. Financial Misconduct Details - From 2020 to 2022, *ST Yuancheng inflated its operating costs by 158 million yuan, revenue by 209 million yuan, and total profit by 50.46 million yuan under the direction of Zhu Changren [2]. - The company failed to adjust its financial records based on settlement approvals for various infrastructure projects, resulting in an inflated revenue of 14.16 million yuan and profit of 13.45 million yuan in the 2022 annual report, which represented 4.33% and 24.60% of the disclosed amounts, respectively [2]. Stock Issuance and Misrepresentation - In 2022, *ST Yuancheng's non-public stock issuance documents included fabricated financial data related to the Yu Longshan project, which was not accurate or truthful [2]. - The company raised 285 million yuan through a non-public stock issuance, which was based on the inflated financial figures from the Yu Longshan project [2].
603388 严重财务造假 将强制退市!证监会严肃查处!