Mei Ri Jing Ji Xin Wen·2025-12-09 13:19Core Viewpoint - Jiaao Environmental Protection (603822.SH) has received a notice of administrative penalty from the Zhejiang Regulatory Bureau of the China Securities Regulatory Commission, indicating that the company reported false financial data in its annual reports, leading to a change in its stock designation to "ST Jiaao" and a suspension of trading [1][2]. Group 1: Financial Misreporting - As of December 2021, Jiaao Environmental's subsidiary, Jining Jiaao Dingxin Environmental New Materials Co., Ltd., failed to properly account for the completion of its 20,000-ton environmental plasticizer project, resulting in misreported financial data for 2022 and 2023 [2][4]. - In 2022, the company understated operating costs by 13.44 million yuan, understated financial expenses by 5.77 million yuan, overstated total profit by 19.21 million yuan (28.91% of reported total profit), and overstated net profit by 15.26 million yuan (49.06% of reported net profit) [3]. - In 2023, the company understated operating costs by 13.56 million yuan, overstated total profit by 13.56 million yuan (63.72% of reported total profit), and overstated net profit by 10.44 million yuan (200.38% of reported net profit), with a turnaround from loss to profit [3]. Group 2: Regulatory Actions - The Zhejiang Regulatory Bureau has determined that Jiaao Environmental's actions constitute violations of the Securities Law, leading to proposed penalties including a warning and a fine of 5.5 million yuan for the company, 2.5 million yuan for the former chairman Shen Jian, and 2 million yuan for the former CFO Wu Yimin [5]. - The company has stated its intention to take measures to mitigate the negative impact and will apply for the removal of the risk warning once conditions are met [1]. Group 3: Company Background - Jiaao Environmental Protection was established in January 2003 and went public in 2016, focusing on the research, production, and sales of bio-based plasticizers and biomass energy [6]. - On December 9, the company's stock rose by 0.87%, closing at 84.73 yuan per share [7].