Yuancheng(SH:603388) Shang Hai Zheng Quan Bao·2026-01-10 05:08Core Viewpoint - The company Yuan Cheng Environment Co., Ltd. (formerly known as "*ST Yuan Cheng") has been penalized by the Zhejiang Securities Regulatory Bureau for significant violations, including false records in annual reports and fabrication of major false content in non-public stock issuance documents, resulting in a total penalty of 79.4546 million yuan [2][6]. Group 1: Violations and Penalties - The administrative penalty decision revealed that the annual reports from 2020 to 2022 contained false records, with the company inflating labor and machinery costs related to the Yue Long Mountain International Tourism Resort project, leading to a cumulative inflation of operating costs by 158 million yuan, operating income by 209 million yuan, and total profit by 50.46 million yuan [4][5]. - In 2022, the company failed to adjust financial records based on settlement approval documents for several infrastructure projects, resulting in an inflated operating income of 14.1614 million yuan and an inflated total profit of 13.4533 million yuan, which represented 4.33% and 24.60% of the disclosed amounts, respectively [5]. - The Zhejiang Securities Regulatory Bureau imposed a fine of approximately 37.4546 million yuan on Yuan Cheng, along with individual fines for the actual controller and other responsible persons ranging from 2 million to 5 million yuan [6][7]. Group 2: Consequences for Individuals - The actual controller and former chairman, Zhu Changren, received a warning and a fine of 28 million yuan, along with a 10-year ban from the securities market, prohibiting him from engaging in any securities-related business or holding positions in other securities issuers during the ban period [6][7]. - Other responsible individuals, including the former vice chairman and general manager, were also penalized with fines ranging from 2 million to 5 million yuan [6]. Group 3: Company Background - Yuan Cheng Environment Co., Ltd. was established in 1999 and operates in three core areas: ecological landscape, green environmental protection, and leisure tourism [8]. - The company was delisted from the Shanghai Stock Exchange on December 5, 2025 [8].