Yuancheng(SH:603388) Shang Hai Zheng Quan Bao·2025-10-17 18:44Core Viewpoint - Yuan Cheng Environment Co., Ltd. is facing the risk of being delisted due to suspected financial data falsification in its annual reports, as confirmed by the China Securities Regulatory Commission (CSRC) [2][4][6] Group 1: Investigation and Allegations - The company is under investigation by the CSRC for allegedly falsifying financial data in its annual reports from 2020 to 2022, which includes inflating costs and revenues related to the Yuelongshan project [2][4] - The CSRC issued a notice on October 10, 2025, detailing that the company inflated operating costs by approximately 158.44 million yuan, operating income by about 208.90 million yuan, and total profit by around 50.46 million yuan from 2020 to 2022 [4][6] - Specific figures include: - For 2020: inflated costs of 115.08 million yuan, income of 153.56 million yuan, and profit of 38.48 million yuan, representing 22.75%, 21.48%, and 36.60% of the reported amounts respectively - For 2021: inflated costs of 25.08 million yuan, income of 36.17 million yuan, and profit of 11.09 million yuan, representing 5.99%, 6.31%, and 19.32% respectively - For 2022: inflated costs of 18.28 million yuan, income of 19.17 million yuan, and profit of 0.89 million yuan, representing 7.22%, 5.86%, and 1.62% respectively [4][5] Group 2: Potential Consequences - If the formal penalty decision confirms the allegations, the company may face mandatory delisting under the Shanghai Stock Exchange rules [2][6][7] - The company has stated it will cooperate fully with the CSRC and will exercise its rights to defend itself [3][6] - As of October 17, 2025, the company's market capitalization has been below 500 million yuan for four consecutive trading days, which could lead to further delisting actions [7]