Yuancheng(SH:603388) 2 1 Shi Ji Jing Ji Bao Dao·2025-10-10 14:08Core Viewpoint - The regulatory authority has taken significant action against *ST Yuancheng for systematic financial fraud over three consecutive years, leading to substantial penalties and the initiation of delisting procedures [2][4][10]. Group 1: Financial Fraud Details - *ST Yuancheng inflated its operating income by 209 million yuan and its total profit by 50.46 million yuan from 2020 to 2022 [2][4]. - The company used fraudulent financial data in its 2022 non-public stock issuance documents, constituting fraudulent issuance [2][4]. - The penalties include a fine of 37.45 million yuan for the company and a total of 42 million yuan for five responsible individuals, with the actual controller and chairman, Zhu Chang, fined 28 million yuan and banned from the securities market for ten years [6][8]. Group 2: Regulatory Environment - The increase in major illegal delisting cases is attributed to significant adjustments in delisting regulations rather than an increase in fraudulent companies [3][12]. - The new regulations specify that companies with continuous fraud for three years or more will be firmly delisted, and the thresholds for fraud amounts and ratios have been lowered [12][13]. - The regulatory approach now includes a "three penalties linkage" system, combining administrative, civil, and criminal penalties for financial fraud cases, reflecting a zero-tolerance policy towards market violations [3][7][12]. Group 3: Market Impact - *ST Yuancheng is the 13th company in 2025 to meet the criteria for mandatory delisting due to major violations, marking a historical high [11]. - Among the companies that have faced delisting, eight have already completed the process, indicating a trend towards stricter enforcement of delisting regulations [11]. - The current regulatory environment is expected to lead to a decrease in the number of companies engaging in systematic financial fraud, as the existing risks are gradually being cleared [12].