Core Viewpoint - Hubei Jing Shan Light Industry Machinery Co., Ltd. (referred to as Jing Shan Light Machine) has announced its rectification measures in response to the administrative penalty notice received from the Hubei Securities Regulatory Bureau regarding financial fraud that inflated revenue and profit figures in 2018 [1][2] Group 1: Financial Misconduct and Penalties - Jing Shan Light Machine inflated its revenue by 58.19 million yuan and profit by 46.70 million yuan through its former subsidiary, Shenzhen Huida Cheng Intelligent Technology Co., Ltd., leading to false records in its 2018 annual report [1] - The Hubei Securities Regulatory Bureau plans to impose a warning and a fine of 5 million yuan on Jing Shan Light Machine, along with fines ranging from 30,000 to 250,000 yuan on responsible individuals including the former chairman and general manager [2] Group 2: Company Response and Remediation - The company emphasized that the involved subsidiary, Huida Cheng, has been shut down and is unrelated to its current main business, with financial corrections completed in 2022 [2][6] - Jing Shan Light Machine reported that the incident was a result of financial fraud by Huida Cheng's former shareholders to meet performance commitments, and the company proactively reported the issue to authorities in 2021 [5] Group 3: Business Operations and Financial Impact - Despite the penalties, Jing Shan Light Machine stated that its production and operations remain normal, with stable performance in its core businesses of photovoltaic equipment, lithium battery equipment, and packaging equipment [6] - The company reported a significant decline in revenue, with a 32.77% year-on-year decrease to 1.795 billion yuan and a 51.68% drop in net profit to 79 million yuan for the third quarter of 2025 [2] Group 4: Future Measures and Governance - The company plans to enhance its corporate governance by initiating a comprehensive internal control review and strengthening oversight of subsidiaries to prevent future incidents [7] - Jing Shan Light Machine will continue to fulfill its information disclosure obligations and apply for the removal of risk warnings from its stock once conditions are met [9][10]

Core Viewpoint - JingShan Light Machine (000821) is facing a risk warning (ST) due to violations in information disclosure related to its 2018 annual report, following a year-long investigation by the Hubei Securities Regulatory Bureau [1][4]. Summary by Sections Company Announcement - On January 16, JingShan Light Machine announced it received an administrative penalty notice from the Hubei Securities Regulatory Bureau, leading to a risk warning for its stock [1][4]. - The stock will be suspended for one day starting January 19 and will resume trading on January 20 under the new name "ST JingJi," with a daily trading limit of 5% [1][4]. Background of Violations - The penalties stem from financial disclosure violations by its former subsidiary, HuiDaCheng, between 2016 and 2018 [5]. - HuiDaCheng and its wholly-owned subsidiary, JingShan JingHui Intelligent Technology Co., Ltd., inflated revenue by CNY 58.19 million and costs by CNY 9.60 million through false contracts, resulting in an inflated profit of CNY 46.70 million, which accounted for 25.49% of the total profit disclosed by JingShan Light Machine in 2018 [2][5]. Regulatory Findings - The Hubei Securities Regulatory Bureau determined that JingShan Light Machine and related parties violated securities laws, proposing a warning and a fine of CNY 5 million for the company and a total of CNY 7.8 million in fines for responsible individuals [2][6]. Company Response - The management expressed sincere apologies for the historical issues and stated that the penalties do not impact the current main business operations or financial status [3][6]. - The company has initiated a comprehensive internal control upgrade plan to prevent similar risks in the future, focusing on enhancing management and compliance culture [3][6]. - JingShan Light Machine's main business segments, including photovoltaic, packaging, and lithium battery intelligent equipment, are operating steadily, with a commitment to technological innovation and market expansion [3][6].