Core Viewpoint - *ST Yuancheng (603388.SH) faces significant penalties and potential delisting due to false financial reporting and fraudulent issuance of shares, with a total fine of 79.45 million yuan proposed against the company and five responsible individuals [2][4]. Financial Misconduct - The company has been found to have false records in annual reports from 2020 to 2022, inflating operating costs by 158 million yuan and revenue by 209 million yuan, with total profit inflated by 50.46 million yuan, representing 36.6% of the disclosed profit in 2020 [3]. - In 2022, the company failed to adjust financial records based on settlement results, leading to an additional inflation of revenue by 14.16 million yuan and profit by 13.45 million yuan, which accounted for 24.6% of the disclosed profit that year [3]. - The 2022 non-public stock issuance raised 285 million yuan based on fraudulent financial data, leading to significant misrepresentation in the issuance documents [3]. Penalties and Regulatory Actions - The Zhejiang Securities Regulatory Bureau proposed a fine of 37.45 million yuan against *ST Yuancheng, with the core responsible person, Zhu Changren, facing a 28 million yuan fine and a 10-year ban from the securities market [4]. - Other key personnel received fines ranging from 2 million to 5 million yuan, with the company facing potential delisting due to serious violations of stock exchange rules [4]. Financial Performance - The company has reported continuous losses, with net profits of -65.48 million yuan in 2022, -162 million yuan in 2023, and -325 million yuan in 2024, totaling over 550 million yuan in losses over three years [5]. - The 2024 audit report indicated uncertainty regarding the company's ability to continue as a going concern, leading to additional risk warnings for its stock [5]. - In the first half of 2025, the company reported a net loss of 127 million yuan, a year-on-year decline of 94.52%, attributed to increased market competition and project margin declines [5].

Core Viewpoint - The company *ST Yuan Cheng (603388.SH)* is facing a severe crisis due to financial fraud, leading to a potential delisting and significant penalties imposed by the regulatory authorities [2][7]. Financial Fraud and Penalties - The China Securities Regulatory Commission (CSRC) has identified that *ST Yuan Cheng* engaged in financial fraud from 2020 to 2022, resulting in a proposed total fine of nearly 80 million yuan, including 37.45 million yuan for the company itself [2][6]. - The fraudulent activities included inflating project costs and revenues, with a total of 1.58 billion yuan in inflated operating costs and 2.09 billion yuan in inflated revenues during the fraudulent period [3][5]. - The company’s financial reports for 2020, 2021, and 2022 showed inflated profits of 38.48 million yuan (36.60%), 11.09 million yuan (19.32%), and 0.886 million yuan (1.62%) respectively [3][4]. Regulatory Actions - The CSRC has classified the case as a serious financial fraud, triggering a mandatory delisting process due to the continuous nature of the fraud over three years [7][8]. - The regulatory body has indicated that any potential criminal elements will be referred to law enforcement agencies for further investigation [7]. Impact on Investors - Investors who suffered losses due to the financial fraud may file for compensation, as the penalties imposed on the company can be used to reimburse affected shareholders [2][11]. - The company has been in a state of continuous losses, with reported revenues of 294 million yuan, 274 million yuan, and 146 million yuan from 2022 to 2024, and a net loss of 66.49 million yuan in 2022 [9][10]. Market Performance - Following the announcement of the fraud and penalties, the stock price of *ST Yuan Cheng* dropped by 4.07% to 1.65 yuan per share, marking a cumulative decline of over 86% from its peak in December 2023 [9][10].

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has announced administrative penalties against *ST Yuancheng for financial fraud, including fines and a 10-year market ban for the actual controller [1][3][4]. Group 1: Administrative Penalties - *ST Yuancheng is facing a fine of 37.45 million yuan for inflating revenue and profits over three consecutive years [1][3]. - Five responsible individuals will collectively face fines totaling 42 million yuan [1][3]. - The actual controller of *ST Yuancheng will be banned from the securities market for 10 years [1][3]. Group 2: Legal Proceedings - The Shanghai Stock Exchange will initiate delisting procedures due to serious violations [2][4]. - The CSRC will transfer any criminal evidence related to the case to law enforcement agencies, adhering to strict legal standards [2][4][6]. Group 3: Financial Misconduct Details - From 2020 to 2022, *ST Yuancheng inflated its revenue by 209 million yuan and total profits by 50 million yuan through fraudulent accounting practices [4]. - The company failed to adjust its financial records based on verified project settlement documents, leading to an inflated revenue of 14 million yuan and total profits of 13 million yuan in its 2022 annual report [4]. Group 4: Regulatory Environment - The CSRC has emphasized a comprehensive approach to tackling financial fraud, including administrative, civil, and criminal penalties [6][7][8]. - In 2024, the CSRC referred 178 cases to law enforcement, marking a 51% increase from the previous year [7].

Core Viewpoint - The company *ST Yuancheng (元成股份)* faces a severe crisis due to financial fraud, leading to a potential delisting and significant penalties from regulatory authorities [2][7]. Financial Fraud and Penalties - The China Securities Regulatory Commission (CSRC) has identified that *ST Yuancheng* engaged in financial fraud from 2020 to 2022, resulting in a proposed total fine of nearly 80 million yuan, including 37.45 million yuan for the company itself [2][6]. - The fraudulent activities included inflating project costs and revenues, with a total of 1.58 billion yuan in inflated costs and 2.09 billion yuan in inflated revenues reported [3][4]. - The company’s financial reports for 2020, 2021, and 2022 showed inflated profits of 38.48 million yuan (36.60%), 11.09 million yuan (19.32%), and 0.886 million yuan (1.62%) respectively [4]. Impact on Investors - Investors are facing significant losses due to the company's fraudulent activities, with the stock price dropping over 86% from its peak in December 2023 [9]. - The company has approximately 10,200 shareholders, and those who suffered losses due to the fraud may file for compensation [9][10]. - Legal experts indicate that the fines imposed could be used to compensate affected investors, as per regulations prioritizing civil compensation over administrative fines [11]. Regulatory Actions and Future Outlook - The CSRC has classified the case as a serious financial fraud, initiating delisting procedures for *ST Yuancheng* [7][8]. - The company has the right to appeal the proposed penalties and defend itself in hearings [7]. - If the regulatory findings are upheld, delisting appears inevitable, reflecting a strict stance on financial misconduct in the market [8].

Core Viewpoint - Asia-Pacific Pharmaceutical is undergoing a second attempt at a change of control since the "Fubon system" took over in 2021, driven by a harsh reality of six and a half years of negative net profit excluding non-recurring items and cumulative losses exceeding 2.7 billion yuan [1] Group 1: Acquisition and Financial Issues - The company's decline began with a 900 million yuan acquisition of Shanghai New Gaofeng Biopharmaceutical Co., which turned out to be a long-term financial fraud scheme [2] - In 2019, the company reported a net profit loss of 2.069 billion yuan, a year-on-year drop of over 1000% [2] - The Zhejiang Securities Regulatory Bureau found that Shanghai New Gaofeng inflated revenue by 453 million yuan and profits by 174 million yuan from 2016 to 2018 [2] - The original controlling shareholder's debts led to a judicial auction of shares, allowing the "Fubon system" to acquire control for 418 million yuan [2] - A compensation agreement requires the counterparty to pay 256 million yuan in performance compensation and penalties, but this amount remains unpaid as of the 2025 semi-annual report [2] Group 2: Ongoing Financial Struggles - Despite the "Fubon system" takeover, the company has not reversed its operational difficulties, with negative net profit excluding non-recurring items for six consecutive years, totaling over 2.5 billion yuan in losses [3] - In the first half of 2025, the company reported operating revenue of 152 million yuan, a year-on-year decline of 31.48% [3] - Although the net profit attributable to shareholders surged by 1820.97%, this was primarily due to non-recurring gains from the sale of a subsidiary, with the actual net profit excluding this transaction being -48.86 million yuan, a year-on-year drop of 524.31% [3] - The company acknowledged that factors such as national centralized procurement and intensified industry competition have led to declining sales revenue [3] Group 3: Risk of Delisting and Control Change - According to revised delisting rules, companies with negative net profit excluding non-recurring items and revenue below 300 million yuan face delisting risk warnings [4] - Asia-Pacific Pharmaceutical's 2024 revenue was 405 million yuan, with a negative net profit of 28.13 million yuan, nearing the warning threshold [4] - If the company cannot achieve revenue growth and turn around its main business in the second half of the year, it is likely to be classified as "ST" [4] - The change of control is seen as a signal of the "Fubon system" exiting, raising questions about whether the new controlling party has the resources to save the company from delisting [4] Conclusion - The saga of Asia-Pacific Pharmaceutical involves a 900 million yuan acquisition that led to financial fraud, ongoing losses for six years, and a struggle for control that reflects a race against time to avoid delisting [5]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has taken strict action against Yuan Cheng Environment Co., Ltd. (*ST Yuan Cheng), imposing fines and banning key personnel due to serious financial fraud, highlighting a zero-tolerance approach to financial misconduct in the capital market [1][4]. Group 1: Financial Fraud Details - The fraudulent activities at *ST Yuan Cheng were systematic, involving inflated project costs and revenues, leading to a total inflated operating cost of 158 million yuan, inflated revenue of 209 million yuan, and inflated profit of 50.46 million yuan from 2020 to 2022 [2][3]. - In 2022, the company failed to adjust its financial records based on the confirmed settlement of the Huaiyin project, resulting in an inflated revenue of 14.16 million yuan and inflated profit of 13.45 million yuan, which constituted 24.6% of the reported profit for that year [2][3]. - The fraudulent financial data was used in a non-public stock issuance in 2022, raising 285 million yuan, which constituted a fraudulent issuance due to the inclusion of false financial information [2][3]. Group 2: Role of Auditors and Underwriters - During the three years of financial fraud, the annual reports received standard unqualified opinions from auditors, raising questions about the effectiveness of their audit procedures and professional skepticism [2][3]. - Haitong Securities, as the underwriter for the 2022 stock issuance, failed to identify and disclose the false financial data, which could lead to administrative penalties, including warnings and fines [3][4]. Group 3: Regulatory Response and Market Implications - The *ST Yuan Cheng case exemplifies the CSRC's stringent stance against financial fraud, with 13 companies facing forced delisting due to serious violations since 2024, marking a historical high [4]. - The regulatory framework is evolving to include a comprehensive accountability system that targets not only the companies but also key individuals and third-party accomplices involved in fraud [4]. - The case serves as a warning to all market participants about the severe consequences of financial fraud, emphasizing the need for vigilance and adherence to ethical practices in the capital market [4][5].

证监会近日对上交所主板上市公司元成环境股份有限公司（简称*ST元成）涉嫌定期报告等财务数据存 在虚假记载作出行政处罚事先告知。证监会拟对上市公司罚款3745.46万元，对5名责任人员合计罚款 4200万元，对实际控制人采取10年证券市场禁入。*ST元成涉嫌触及重大违法强制退市情形，上交所将 依法启动退市程序。 经证监会调查，*ST元成连续三年虚增收入和利润，违反证券法律法规。证监会表示，对于可能涉及的 犯罪线索，证监会将坚持应移尽移的工作原则，严格按照相关规定移送公安机关。 被查出连续三年虚增收入和利润 *ST元成在10月10日发布公告称，收到浙江证监局下发的《行政处罚事先告知书》。 经证监会查明，元成股份、祝昌人涉嫌违法的事实包括，2020年至2022年期间，在实际控制人祝昌人组 织、指使下，*ST元成通过虚增越龙山国际旅游度假区相关项目（以下简称"越龙山项目"）劳务和机械 成本、虚增相应项目产值等方式，累计虚增营业成本1.58亿元、营业收入2.09亿元、利润总额5046.02万 元。 财务造假是侵蚀市场根基的毒瘤，一直是证监会的重点打击对象。近年来，证监会严格落实中央决策部 署，聚焦重点领域和市场关切，通 ...

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued a formal administrative penalty notice against *ST Yuancheng, revealing a systematic financial fraud spanning three years, with inflated revenue of 209 million yuan and inflated profit of 50.46 million yuan [1][4][5] Group 1: Financial Fraud Details - *ST Yuancheng inflated its revenue by 209 million yuan and profit by 50.46 million yuan from 2020 to 2022, under the direction of its actual controller, Chairman Zhu Chang [4][5] - The company used fraudulent financial data in its 2022 non-public stock issuance documents, constituting fraudulent issuance [1][4] - The total fines imposed include 37.45 million yuan on the company and 42 million yuan on five responsible individuals, with Zhu Chang personally fined 28 million yuan and banned from the securities market for 10 years [1][4][5] Group 2: Regulatory Actions and Implications - The case marks *ST Yuancheng as the 13th company in 2025 to trigger major illegal delisting indicators, leading to the initiation of delisting procedures by the Shanghai Stock Exchange [2][7] - The increase in major illegal delisting cases is attributed to significant adjustments in delisting regulations, which now include stricter criteria for continuous fraud and lower thresholds for fraudulent amounts [2][7][8] - The CSRC has adopted a "three penalties linkage" approach, combining administrative, civil, and criminal penalties for financial fraud cases, reflecting a zero-tolerance policy towards market violations [2][5][9] Group 3: Market Impact and Future Outlook - The new delisting standards categorize financial fraud as a major illegal delisting condition, emphasizing the serious impact of such actions on market fairness and order [9] - The current regulatory environment is expected to reduce the number of companies engaging in systematic financial fraud, as the pressure from regulatory authorities increases [9]

Core Viewpoint - The article highlights the recent administrative penalties imposed on *ST Yuancheng for systematic financial fraud over three consecutive years, marking a significant enforcement action by regulatory authorities against financial misconduct in the capital market [1][2][4]. Group 1: Financial Fraud Details - *ST Yuancheng inflated its operating revenue by a total of 209 million yuan and its total profit by 50.46 million yuan from 2020 to 2022 [1][3]. - The company used fraudulent financial data in its 2022 non-public stock issuance documents, constituting fraudulent issuance [1][3]. - The penalties include a fine of 37.45 million yuan for the company and a total of 42 million yuan for five responsible individuals, with the actual controller and chairman, Zhu Chang, personally fined 28 million yuan and banned from the securities market for 10 years [4][5]. Group 2: Regulatory Environment and Trends - The increase in major illegal delisting cases is attributed to significant adjustments in delisting regulations rather than an increase in fraudulent companies [2][6]. - New regulations specify a "clear removal" policy for companies with continuous fraud for three years or more and have lowered the thresholds for delisting based on the amount and proportion of fraud [6][8]. - The regulatory approach now includes a "three-punishment linkage" system, combining administrative, civil, and criminal penalties for financial fraud cases, reflecting a zero-tolerance stance towards market violations [2][4][9]. Group 3: Market Implications - *ST Yuancheng is the 13th company to trigger major illegal delisting indicators in 2025, a record high, with eight of these companies already completing the delisting process [6][7]. - The new delisting standards categorize financial fraud as a key reason for major illegal delisting, emphasizing the severe impact of such actions on market fairness and order [9]. - The current high-pressure regulatory environment is expected to reduce the number of companies engaging in systematic financial fraud, indicating a potential decline in future delistings due to financial misconduct [8][9].

● 本报记者昝秀丽 证监会10月10日消息，证监会近日对上交所主板上市公司元成环境股份有限公司(简称*ST元成 （603388）)涉嫌定期报告等财务数据存在虚假记载作出行政处罚事先告知。经查，*ST元成连续三年虚 增收入和利润，违反证券法律法规。证监会拟对上市公司罚款3745.46万元，对5名责任人员合计罚款 4200万元，对实际控制人采取10年证券市场禁入。 据悉，*ST元成涉嫌触及重大违法强制退市情形，上交所将依法启动退市程序。对于可能涉及的犯罪线 索，证监会将坚持应移尽移的工作原则，严格按照刑法、《最高人民检察院公安部关于公安机关管辖的 刑事案件立案追诉标准的规定(二)》的规定移送公安机关。 ...