Core Viewpoint - Shengyuan Environmental Protection announced a significant loss from a financial investment by its wholly-owned subsidiary, leading to a warning from the Xiamen Securities Regulatory Bureau for failing to disclose the loss in a timely manner [1][3][7] Group 1: Financial Loss and Disclosure - Shengyuan Environmental Protection's subsidiary, Xiamen Jinlingji Construction Engineering Co., Ltd., invested 60 million yuan in a private equity fund, which reported a cumulative net value growth rate of -81.54% as of December 25, resulting in a loss of approximately 46.92 million yuan, exceeding 10% of the company's audited net profit for the last fiscal year [1][3][6] - The company disclosed the loss on December 26, violating regulations regarding timely disclosure [3][9] Group 2: Management Accountability - The chairman, general manager, and board secretary of Shengyuan Environmental Protection were held primarily responsible for the company's failure to fulfill their diligence obligations regarding the disclosure of the financial loss [3][9] Group 3: Compensation Commitment - The controlling shareholders, Zhu Yuxuan and Zhu Hengbing, committed to compensating the investment loss to protect the interests of the company and its shareholders, with the compensation amount being the initial investment of 60 million yuan minus any recoverable amounts [3][5][11] - They pledged to complete the compensation payment by the time of the company's 2025 annual report disclosure, using their own or raised funds [5][11] Group 4: Company Background and Financial Performance - Shengyuan Environmental Protection specializes in waste incineration power generation and sewage treatment, having been listed on the ChiNext board in August 2020 [6][12] - For the first three quarters of the year, the company reported revenue of approximately 1.15 billion yuan, a decrease of 0.67% year-on-year, while the net profit attributable to shareholders increased by 43.22% to approximately 211 million yuan [6][12]
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