Core Viewpoint - Yili Clean Energy Co., Ltd. faces significant penalties for financial fraud and other violations, highlighting the regulatory stance that "delisting does not equate to exemption" from accountability [1][2][3] Group 1: Regulatory Actions - The Inner Mongolia Securities Regulatory Bureau plans to impose a total fine of 375 million yuan on Yili Clean Energy and its controlling shareholder, Yili Resource Group, for various violations from 2016 to 2023 [1][2] - The penalties include 210 million yuan for Yili Clean Energy and 30 million yuan for Yili Resource Group, with additional market bans for seven individuals involved [2][3] - Since the beginning of 2024, the China Securities Regulatory Commission has investigated 67 delisted companies, with 46 receiving final administrative penalties totaling 1.246 billion yuan [3] Group 2: Impact on the Market - The consistent enforcement of penalties against delisted companies is seen as a crucial step towards transforming the capital market, promoting better governance among listed companies [4] - The regulatory approach aims to deter companies from engaging in fraudulent activities and to protect investors' rights, thereby enhancing market integrity [4] - The recent actions against Yili Clean Energy and similar cases are expected to foster a healthier market environment, encouraging a cycle of "survival of the fittest" [4]

Core Viewpoint - Yili Clean Energy (formerly known as Yili Clean Energy) and its controlling shareholder, along with 29 related responsible persons, have been fined 375 million yuan by the Inner Mongolia Securities Regulatory Bureau for financial fraud, related guarantees, and fund occupation from 2016 to 2023 [2][9]. Financial Misconduct - From 2016 to 2022, Yili Clean Energy and its subsidiaries inflated profits, assets, and revenues through various fraudulent activities, resulting in total profit inflation of 192.89 million yuan in 2016, 530.31 million yuan in 2017, and so on, with the inflated profits constituting 3.76% to 9.37% of the reported total profits for those years [3][4]. - The company also inflated assets by 700 million yuan to 3.026 billion yuan from 2016 to 2021, which represented 2.06% to 8.49% of the reported total assets [3][5]. Related Guarantees - Yili Clean Energy provided guarantees to its controlling shareholder and related parties from 2017 to 2021, with amounts ranging from 850 million yuan to 3.010 billion yuan, constituting 8.12% to 17.22% of the latest audited net assets [5][6]. Fund Occupation - Between 2016 and 2023, Yili Clean Energy occupied funds through various means, with amounts ranging from 700 million yuan to 2 billion yuan annually, representing 1.09% to 23% of the latest audited net assets [7][8]. Fraudulent Bond Issuance - The company issued bonds in April and July 2020, with a total scale of 1 billion yuan, using financial statements that contained false records and significant omissions, constituting fraudulent issuance [8]. Regulatory Actions - Following the violations, Yili Clean Energy received a notice of administrative punishment and was investigated by the China Securities Regulatory Commission, leading to its delisting due to stock prices falling below 1 yuan for 20 consecutive trading days [9][10].