The China Securities Regulatory Commission has issued an advance notice of administrative penalties against Yuan Cheng Environment Co., Ltd. (*ST Yuan Cheng), a Shanghai Stock Exchange main-board listed company, over suspected false entries in periodic reports and other financial data. The investigation found the company overstated revenue and profits for three consecutive years, in breach of securities laws and regulations. The regulator proposes a CNY 37.4546 million fine for the listed company, combined fines of CNY 42 million for five responsible individuals, and a 10-year securities market ban for the actual controller. The misconduct may trigger mandatory delisting for major violations, with the Shanghai Stock Exchange set to initiate delisting procedures, and any suspected criminal leads to be transferred to public security authorities in line with the Criminal Law and applicable case-filing and prosecution standards.
China Securities Regulatory Commission2025-10-10
China Securities Regulatory Commission issues advance penalty notice proposing CNY 37.45 million fine and 10-year market ban for *ST Yuan Cheng’s inflated results
The China Securities Regulatory Commission announced penalties against Yuan Cheng Environment Co., Ltd. for overstating revenue and profits. Proposed penalties include a CNY 37.4546 million fine for the company, CNY 42 million in fines for five individuals, and a 10-year market ban for the actual controller. The Shanghai Stock Exchange may initiate delisting procedures, and criminal leads will be referred to public security authorities.