Zhong Guo Jing Ji Wang·2025-12-31 10:03Core Viewpoint - Shengyuan Environmental Protection's subsidiary, Xiamen Jinlingji Construction Engineering Co., Ltd., has incurred significant losses from a private fund investment, leading to legal actions and regulatory scrutiny [1][5][6]. Group 1: Investment Details - On December 26, Shengyuan Environmental Protection announced the investment of RMB 60 million in the "Shenbo Hongtu Growth No. 1 Private Securities Investment Fund" managed by Shenzhen Shenboxin Investment Management Co., Ltd. [1] - The fund is classified as R4 level (medium-high risk) and has experienced a drastic decline in net value, with a cumulative net value growth rate dropping to -81.54% by December 25, 2025 [3][4]. Group 2: Losses and Investigations - The fund's net value plummeted from RMB 0.9215 per unit on December 4, 2025, to RMB 0.2596 on December 11, 2025, indicating a cumulative net value growth rate decrease of -74.04% [3]. - Following the discovery of the fund's significant losses, a special task force was established to investigate the matter, revealing potential misconduct by the fund manager, including unauthorized trading and falsification of net value information [4][5]. Group 3: Legal and Regulatory Actions - The company has reported the situation to law enforcement and the China Securities Regulatory Commission, seeking legal recourse against the fund manager and the fund custodian, China Merchants Securities Co., Ltd. [5][6]. - The company received a warning letter from the Xiamen Securities Regulatory Bureau for failing to disclose the investment losses in a timely manner, leading to scrutiny of the actions of its executives [6].