Yuancheng(SH:603388) 2 1 Shi Ji Jing Ji Bao Dao·2025-10-11 00:16Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued a formal administrative penalty notice against *ST Yuancheng, revealing a systematic financial fraud spanning three years, with inflated revenue of 209 million yuan and inflated profit of 50.46 million yuan [1][4][5] Group 1: Financial Fraud Details - *ST Yuancheng inflated its revenue by 209 million yuan and profit by 50.46 million yuan from 2020 to 2022, under the direction of its actual controller, Chairman Zhu Chang [4][5] - The company used fraudulent financial data in its 2022 non-public stock issuance documents, constituting fraudulent issuance [1][4] - The total fines imposed include 37.45 million yuan on the company and 42 million yuan on five responsible individuals, with Zhu Chang personally fined 28 million yuan and banned from the securities market for 10 years [1][4][5] Group 2: Regulatory Actions and Implications - The case marks *ST Yuancheng as the 13th company in 2025 to trigger major illegal delisting indicators, leading to the initiation of delisting procedures by the Shanghai Stock Exchange [2][7] - The increase in major illegal delisting cases is attributed to significant adjustments in delisting regulations, which now include stricter criteria for continuous fraud and lower thresholds for fraudulent amounts [2][7][8] - The CSRC has adopted a "three penalties linkage" approach, combining administrative, civil, and criminal penalties for financial fraud cases, reflecting a zero-tolerance policy towards market violations [2][5][9] Group 3: Market Impact and Future Outlook - The new delisting standards categorize financial fraud as a major illegal delisting condition, emphasizing the serious impact of such actions on market fairness and order [9] - The current regulatory environment is expected to reduce the number of companies engaging in systematic financial fraud, as the pressure from regulatory authorities increases [9]