JAHB(SH:603822) Xin Lang Cai Jing·2025-12-19 01:44Core Viewpoint - Zhejiang Jiaao Environmental Technology Co., Ltd. (referred to as Jiaao Environmental or ST Jiaao) is facing administrative penalties from the China Securities Regulatory Commission (CSRC) for violations related to financial disclosures and accounting practices [1][2][3]. Group 1: Violations and Financial Impact - Jiaao Environmental's subsidiary, Jining Jiaao Dingxin Environmental New Materials Co., Ltd., failed to timely transfer a 20,000-ton environmental plasticizer project to fixed assets and did not accurately calculate related loan interest, leading to false financial disclosures in the 2022 and 2023 annual reports [2][6]. - In 2022, the company understated operating costs by CNY 13,444,175.77, understated financial expenses by CNY 5,767,483.35, inflated total profit by CNY 19,211,659.12 (28.91% of reported profit), and inflated net profit by CNY 15,258,202.58 (49.06% of reported net profit) [2][6]. - In 2023, the company understated operating costs by CNY 13,558,188.38, inflated total profit by the same amount (63.72% of reported profit), and inflated net profit by CNY 10,441,351.18 (200.38% of reported net profit), with a turnaround from loss to profit [2][6]. Group 2: Regulatory Actions and Legal Implications - The CSRC's Zhejiang Regulatory Bureau has proposed warnings and fines against Jiaao Environmental and its responsible personnel due to the identified violations [2][3]. - Following the administrative penalties, a lawyer from Shanghai Hanlian Law Firm is collecting claims from investors who purchased Jiaao Environmental's securities between April 21, 2023, and August 23, 2024, and either sold or continued to hold them after August 24, 2024 [4][8]. - Investors affected by the false disclosures may seek civil compensation for losses, which includes investment differences, commissions, and stamp duties, as per the Civil Code and Securities Law [8][9].