On the evening of December 7, *ST Huichen (688500) announced that the company received the "Prior Notice of Administrative Punishment" issued by the Beijing Securities Regulatory Bureau. Due to the false records in the prospectus and the annual reports from 2020 to 2022, the Beijing Securities Regulatory Bureau intends to impose administrative penalties on the company and relevant parties in accordance with the law.
According to the notice, in June 2017 and December 2020, *ST Huichen successively acquired 48% and 22% of the shares of Beijing Xintang Puhua Technology *** hereinafter referred to as "Xintang Puhua"), and Xintang Puhua became a holding subsidiary of *ST Huichen.
Sino-Tang Puhua falsely inflated revenue and profits by fictitious business with third parties, signing sales contracts without commercial substance, and recognizing project revenue in advance, resulting in false records in the Prospectus disclosed by *ST Huichen on July 13, 2020, and the annual reports from 2020 to 2022 disclosed after the initial listing.
Specifically, since 2018, before the listing, *ST Huichen's financial reports have begun to have false records. In 2018, Xintang Puhua inflated its profit by 555 in 2018 by signing a sales contract without commercial substance310,000 yuan;In 2019, Xintang Puhua et al. inflated their operating income by 721700,000 yuan;Inflated profits 1785880,000 yuan.
In this regard, the Beijing Securities Regulatory Bureau intends to decide: to order *ST Huichen to make corrections, give a warning, and impose a fine of 5 million yuan;The relevant parties were given warnings and fined a total of 11 million yuan.
In addition to administrative penalties, ST Huichen also faces civil compensation for investors. Wu Lijun, a lawyer at Shanghai Haihui Law Firm, said that all injured investors who held the ** during the period from July 7, 2020 to April 28, 2023 and still held the ** on April 28, 2023 can register and participate in the claim through the official account "Dazhong ** Bao" (feature code: 18). The final claim conditions are subject to the court's determination.