Core Viewpoint - Yongqing Environmental Protection (300187.SZ) faced regulatory scrutiny due to two directors failing to fulfill their shareholding increase commitments, which was intended to boost investor confidence and stabilize stock prices [2][3][4]. Group 1: Shareholding Increase Plan - Directors Xiao Mingzhi and Wang Zhenguo planned to increase their holdings by at least 11.4 million yuan (approximately 1.14 million) from June 17, 2024, to June 16, 2025, but only managed to increase their holdings by 121,820 yuan (approximately 0.12 million), achieving less than 11% of their target [3][4]. - The Shenzhen Stock Exchange issued a regulatory letter highlighting that the directors' actions violated several rules, emphasizing the need for honesty and adherence to commitments [4]. Group 2: Financial Performance - Yongqing Environmental Protection reported a significant decline in revenue, with 2022 revenue at 713 million yuan, down 28.93% year-on-year, and a net loss of 387 million yuan [6]. - In 2023, the company generated 646 million yuan in revenue, a 9.47% decrease, but managed to turn a profit with a net income of approximately 79.8 million yuan, although the non-recurring profit still showed a loss of 15.4 million yuan [7]. - For 2024, revenue increased to 760 million yuan, a 17.71% growth, but the traditional environmental business saw a 56% decline in revenue, while the new energy "dual carbon" business surged by 101% to 609 million yuan [7]. Group 3: Industry Challenges - The traditional environmental protection business is under severe pressure due to intensified competition and overall weak industry demand, particularly in soil remediation and hazardous waste disposal [5][7]. - Factors such as tightened local government environmental spending have made project acquisition more challenging, leading to a contraction in related business activities [7].