Yuancheng(SH:603388) Zhong Guo Jing Ying Bao·2025-10-13 14:17Core Viewpoint - *ST Yuancheng (603388.SH) faces significant penalties and potential delisting due to false financial reporting and fraudulent issuance of shares, with a total fine of 79.45 million yuan proposed against the company and five responsible individuals [2][4]. Financial Misconduct - The company has been found to have false records in annual reports from 2020 to 2022, inflating operating costs by 158 million yuan and revenue by 209 million yuan, with total profit inflated by 50.46 million yuan, representing 36.6% of the disclosed profit in 2020 [3]. - In 2022, the company failed to adjust financial records based on settlement results, leading to an additional inflation of revenue by 14.16 million yuan and profit by 13.45 million yuan, which accounted for 24.6% of the disclosed profit that year [3]. - The 2022 non-public stock issuance raised 285 million yuan based on fraudulent financial data, leading to significant misrepresentation in the issuance documents [3]. Penalties and Regulatory Actions - The Zhejiang Securities Regulatory Bureau proposed a fine of 37.45 million yuan against *ST Yuancheng, with the core responsible person, Zhu Changren, facing a 28 million yuan fine and a 10-year ban from the securities market [4]. - Other key personnel received fines ranging from 2 million to 5 million yuan, with the company facing potential delisting due to serious violations of stock exchange rules [4]. Financial Performance - The company has reported continuous losses, with net profits of -65.48 million yuan in 2022, -162 million yuan in 2023, and -325 million yuan in 2024, totaling over 550 million yuan in losses over three years [5]. - The 2024 audit report indicated uncertainty regarding the company's ability to continue as a going concern, leading to additional risk warnings for its stock [5]. - In the first half of 2025, the company reported a net loss of 127 million yuan, a year-on-year decline of 94.52%, attributed to increased market competition and project margin declines [5].