Yuancheng(SH:603388) Zhong Guo Jing Ying Bao·2025-10-11 10:30Core Viewpoint - The China Securities Regulatory Commission (CSRC) has announced administrative penalties against *ST Yuancheng for financial fraud, including fines and a 10-year market ban for the actual controller [1][3][4]. Group 1: Administrative Penalties - *ST Yuancheng is facing a fine of 37.45 million yuan for inflating revenue and profits over three consecutive years [1][3]. - Five responsible individuals will collectively face fines totaling 42 million yuan [1][3]. - The actual controller of *ST Yuancheng will be banned from the securities market for 10 years [1][3]. Group 2: Legal Proceedings - The Shanghai Stock Exchange will initiate delisting procedures due to serious violations [2][4]. - The CSRC will transfer any criminal evidence related to the case to law enforcement agencies, adhering to strict legal standards [2][4][6]. Group 3: Financial Misconduct Details - From 2020 to 2022, *ST Yuancheng inflated its revenue by 209 million yuan and total profits by 50 million yuan through fraudulent accounting practices [4]. - The company failed to adjust its financial records based on verified project settlement documents, leading to an inflated revenue of 14 million yuan and total profits of 13 million yuan in its 2022 annual report [4]. Group 4: Regulatory Environment - The CSRC has emphasized a comprehensive approach to tackling financial fraud, including administrative, civil, and criminal penalties [6][7][8]. - In 2024, the CSRC referred 178 cases to law enforcement, marking a 51% increase from the previous year [7].