Yuancheng(SH:603388) Zhong Guo Zheng Quan Bao - Zhong Zheng Wang·2025-10-10 12:13Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued a notice regarding administrative penalties against Yuancheng Environment Co., Ltd. (*ST Yuancheng) for falsifying financial data in its periodic reports, leading to potential delisting from the Shanghai Stock Exchange [1][8]. Group 1: Financial Misconduct - Yuancheng Environment has been found to have inflated revenue and profits for three consecutive years (2020-2022), violating securities laws [1][5]. - The company inflated its operating costs by approximately 158.44 million yuan, revenue by about 208.90 million yuan, and total profit by around 50.46 million yuan through manipulation of the Yuelongshan project [2]. - In 2022, the company failed to adjust its financial records based on the settlement results of the Huaiyin project, leading to an inflated revenue of approximately 14.16 million yuan and profit of about 13.45 million yuan, which represented 4.33% and 24.60% of the reported figures, respectively [3]. Group 2: Regulatory Actions - The CSRC plans to impose a fine of approximately 37.45 million yuan on Yuancheng and a total of 42 million yuan on five responsible individuals, including a 10-year market ban on the actual controller, Zhu Changren [1][8]. - The company’s 2022 non-public stock issuance documents contained significant false information, violating multiple provisions of the Securities Law [4][6]. - The CSRC has indicated that Yuancheng's actions may trigger mandatory delisting procedures due to serious violations of the listing rules [8]. Group 3: Individual Accountability - Zhu Changren, as the actual controller, is accused of orchestrating the financial misconduct and will face a 10-year ban from the securities market [5][8]. - Other key personnel, including Zhou Jinhai, Yao Lihua, and Chen Ping, are also facing fines and warnings for their roles in the financial misreporting [9].