Zhitong Finance App News, Yuancheng Co., Ltd. (603388.SH) announced that the company recently received the administrative supervision measures decision “Decision on Issuing Warning Letter Measures against Yuancheng Environmental Co., Ltd. and related personnel” (“Warning Letter”) issued by the Zhejiang Regulatory Bureau (“Zhejiang Securities Regulatory Bureau”) of the China Securities Regulatory Commission.

The Zhejiang Securities Regulatory Bureau discovered the following problems during the on-site inspection: First, the company's disclosure of relevant information such as operating income and profit in the 2020, 2021, and 2022 annual reports and 2023 semi-annual reports was inaccurate. Second, the company failed to disclose non-operating financial transactions with the actual controller Zhu Changren in its 2020, 2021, 2022 annual reports and 2023 semi-annual reports in accordance with regulations. Third, the company did not fully disclose related parties in its 2017 to 2022 report in accordance with regulations. Fourth, the company did not fully disclose the equity transaction with Saishi Group Co., Ltd. Fifth, there are major flaws in the company's internal controls relating to capital payments and supplier management.

According to reports, the above acts of the company violate relevant regulations. Chairman and actual controller Zhu Changren, then-general manager and board secretary Yao Lihua, board secretary Chai Juzhu, financial director Chen Ping, and supervisor Yu Jianfei bear the main responsibility for these irregularities. According to regulations, the Zhejiang Securities Regulatory Bureau decided to take separate supervisory and administrative measures to issue warning letters against the company, Zhu Changren, Yao Lihua, Chai Juzhu, Chen Ping, and Yu Jianfei.