Core Viewpoint - The article discusses the regulatory scrutiny faced by Shenwan Hongyuan Securities in relation to the IPO project of Hainuoer Environmental Industry Co., Ltd., highlighting issues with internal controls over R&D expenditures and previous regulatory penalties faced by the company [1][4][10]. Group 1: Regulatory Actions - The Shenzhen Stock Exchange announced self-regulatory measures against Shenwan Hongyuan Securities and its representatives due to issues in the Hainuoer IPO project, including inadequate internal controls over R&D expenditures [1][4]. - Hainuoer has faced multiple regulatory actions, including three failed IPO attempts, with the latest being the withdrawal of its application in July 2024 [6][7]. Group 2: R&D Expenditure Issues - Hainuoer's reported R&D expenditures from 2020 to the first half of 2023 were 3.60 million, 9.33 million, 10.23 million, and 4.24 million, representing 2.57%, 3.79%, 4.06% of its revenue respectively, indicating a trend of increasing R&D investment [5]. - The Shenzhen Stock Exchange found discrepancies in Hainuoer's disclosures regarding R&D expenses, including issues with the classification and accounting of these costs [4][8]. Group 3: Shenwan Hongyuan's Past Penalties - Shenwan Hongyuan has previously received multiple warnings and penalties related to its sponsorship duties, particularly concerning R&D expenditure issues in other IPO projects [10][15]. - The company was criticized for failing to adequately verify the accuracy of R&D personnel and expenditures in its past projects, leading to regulatory actions [12][13].