Core Viewpoint - The company, Tsinghua Environment Technology Development Co., Ltd., has received an administrative penalty for illegal discharge of water pollutants by its subsidiary, Kunming Dianqing Biotechnology Development Co., Ltd. The penalty amounts to RMB 267,000 and is based on violations of environmental protection laws [1][6][11]. Summary by Sections Administrative Penalty Details - Kunming Dianqing was found to have discharged wastewater in violation of regulations, leading to an investigation by the Kunming Ecological Environment Bureau [2][3]. - The company was ordered to cease illegal discharge practices and rectify its operations by specific deadlines [4][5]. - The monitoring results indicated significant levels of pollutants, including ammonia nitrogen at 274.9 mg/L and chemical oxygen demand at 1901 mg/L, which exceeded permissible limits [3]. Legal Basis for Penalty - The penalty was imposed under the Water Pollution Prevention and Control Law, which allows for fines ranging from RMB 100,000 to 1 million for such violations [5][6]. - The specific penalty amount of RMB 267,000 was determined based on various factors, including the severity of the violation and the company's compliance history [5][6]. Compliance and Remediation - The company has already paid the penalty and is committed to enhancing its environmental management practices to prevent future violations [11]. - The company has submitted a rectification report to the authorities, indicating steps taken to comply with the orders [5][11]. Impact on Company Operations - The administrative penalty is not expected to have a significant impact on the company's overall operations [11]. - The company is focused on improving its internal controls and compliance with environmental regulations to safeguard investor interests [11]. Ongoing Legal Matters - The company is currently involved in multiple ongoing lawsuits, with total claims amounting to RMB 6 billion, which represents 221.67% of its latest audited net assets [14][22]. - The company is actively working to manage these legal risks and improve its financial position through various measures [14][24].