ST Jihua has received an administrative penalty decision from the China Securities Regulatory Commission for false records in its annual reports from 2018 to 2021. The company and several former senior executives were fined a total of 23.2 million yuan. Investigations found that through financing trade and agency business, the company inflated its operating revenue by 5.098 billion yuan, 2.998 billion yuan, 551 million yuan, and 1.013 billion yuan respectively over the four years, while inflating operating costs by 5.079 billion yuan, 2.98 billion yuan, 551 million yuan, and 1.013 billion yuan. In addition, a wholly-owned subsidiary recognized land sale revenue across periods, causing the 2020 annual report to understate total profit by 502 million yuan. The CSRC ordered the company to rectify the issues, issued a warning, and imposed a fine of 7 million yuan. Fourteen responsible individuals, including former chairmen Li Yiling and Yuan Haili, were given warnings and fined between 500,000 and 2.5 million yuan each. The company's stock will be subject to other risk warnings starting May 6, 2026, with its abbreviation changed to ST Jihua. For the first half of 2026, the company expects a net loss attributable to shareholders of between 276 million and 296 million yuan, a significant widening of losses year-on-year.
Jihua Group Corp LtdCSRC fined company for false revenue records over four years, imposing penalties and risk warning.