Yuancheng(SH:603388) Zhong Guo Jing Ying Bao·2025-10-11 02:08Core Viewpoint - The China Securities Regulatory Commission (CSRC) has announced administrative penalties against *ST Yuancheng for financial fraud, including fines and potential delisting procedures due to significant violations of securities laws [2][3][4]. Group 1: Administrative Penalties - *ST Yuancheng is facing a proposed fine of 37.45 million yuan for the company and a total of 42 million yuan for five responsible individuals [3][4]. - The actual controller of *ST Yuancheng will be banned from the securities market for 10 years [2][3]. Group 2: Financial Misconduct Details - The company has been found to have inflated revenue and profits for three consecutive years, with a total inflated revenue of 209 million yuan and inflated profit of 50 million yuan [4]. - Specific projects, such as the Yuelongshan International Tourism Resort, were used to manipulate financial data, leading to discrepancies in reported earnings [4][5]. Group 3: Legal and Regulatory Actions - The CSRC will transfer any criminal evidence related to the case to law enforcement agencies, adhering to strict legal protocols [4][6][7]. - In 2024, the CSRC reported a 51% increase in the number of cases sent to police for criminal investigation, indicating a tougher stance on financial misconduct [8]. Group 4: Industry Implications - The regulatory environment is becoming increasingly stringent, with a focus on comprehensive accountability that includes administrative, civil, and criminal penalties for financial fraud [8]. - Legal experts emphasize the importance of a multi-faceted approach to deter financial misconduct and protect investors in the capital market [8].