Dahua Certified Public Accountants fined and confiscated 4.77 million yuan for perfunctory audit of ST Xinyuan

Regulation
โดย 财中社·Read original
Summary · why it matters

Dahua Certified Public Accountants has been fined and had 4.77 million yuan confiscated by the Jiangxi Securities Regulatory Bureau for failing to exercise due diligence in its audit of ST Xinyuan. Signing certified public accountants Li Hongyi and Guan Defu were each fined 300,000 yuan. Investigations found that ST Xinyuan inflated its 2022 and 2023 revenue and profits by fabricating distributed storage equipment business, yet Dahua issued a standard unqualified audit report. Audit working papers show that in 2022, all suppliers for this business were replaced compared to 2021, and the company faced performance pressure from equity incentives. Dahua failed to pay sufficient attention to these anomalies, and both control tests and substantive procedures were flawed.

Impact on stocks 1

© 2026 MarketDXNews