Core Viewpoint - The China Securities Regulatory Commission (CSRC) has announced administrative penalties against Yuan Cheng Environment Co., Ltd. (*ST Yuan Cheng) for falsifying financial data in its periodic reports, leading to potential delisting from the Shanghai Stock Exchange [1][2]. Group 1: Regulatory Actions - The CSRC has proposed a fine of 37.45 million yuan against *ST Yuan Cheng and a total of 42 million yuan against five responsible individuals [1][2]. - The actual controller of *ST Yuan Cheng is facing a 10-year ban from the securities market due to severe violations [2]. - The company is under investigation for potential criminal activities, with evidence to be forwarded to law enforcement [1]. Group 2: Financial Misconduct Details - The CSRC's notice indicates that *ST Yuan Cheng inflated revenue and profits for three consecutive years from 2020 to 2022, violating securities laws [1][2]. - Specific fraudulent activities included inflating project costs and revenues related to the Yuelongshan project and failing to account for discrepancies in the Huaiyin project, which led to inflated profits in 2022 [2]. Group 3: Company Overview - Yuan Cheng Environment Co., Ltd. was established in 1999 and is headquartered in Hangzhou, Zhejiang. It focuses on ecological environment governance and landscape construction, with services including water pollution control, soil remediation, and municipal engineering [3]. Group 4: Market Reaction - On October 10, *ST Yuan Cheng's stock price fell by 4.07%, closing at 1.65 yuan per share [4].