*ST Xingnong: Due to inflated revenue and profits, the company and several responsible persons were fined a total of 6.9 million yuan.

On March 30, Xingguang Agricultural Machinery Co., Ltd. (*ST Xingnong (rights protection), 603789.SH) issued an announcement. The company received an “Administrative Penalty Decision” ([2026] No. 5) issued by the Zhejiang Regulatory Bureau of the China Securities Regulatory Commission (hereinafter referred to as the “Zhejiang CSRC Bureau”). As the company overstated operating revenue by more than RMB 60 million in 2023, the Zhejiang CSRC Bureau imposed a total fine of RMB 6.9 million on *ST Xingnong and multiple responsible persons. On the same day, the Shanghai Stock Exchange issued a public censure.

After investigation, in 2023, *ST Xingnong’s wholly-owned subsidiary, Bazhou Xingguang Zhiyuan Smart Agriculture Technology Co., Ltd. (hereinafter referred to as “Xingguang Zhiyuan”), carried out businesses such as fake cotton harvesting, consulting services, promotion services, etc. In 2023, the company overstated operating revenue by RMB 60.72 million, accounting for 19.69% of the operating revenue disclosed for the period; overstated total profit by RMB 5.2895 million, accounting for 9.77% of the absolute value of the total profit disclosed for the period, which resulted in a false record in the 2023 annual report. On September 27, 2025, *ST Xingnong issued an announcement on “Accounting Error Corrections and Restatement Adjustments for the Prior Period,” in which the above matters were adjusted retroactively.

The Zhejiang CSRC Bureau held that the above conduct of *ST Xingnong violated the relevant provisions of Article 78, Paragraph 2, of the Securities Law, and constituted an unlawful conduct situation described in Article 197, Paragraph 2, of the Securities Law.

The Zhejiang CSRC Bureau decided: to issue a warning to *ST Xingnong and impose a fine of RMB 2.5 million; at the same time, to issue warnings to He Dejun, then chairman; Zheng Bin, then director and general manager; and Liu Tao, then general manager of Xingguang Zhiyuan, and impose fines of RMB 1.2 million each; to issue a warning to Wu Haijuan, then financial officer, and impose a fine of RMB 0.8 million.

On March 30, the Shanghai Stock Exchange released a decision titled “Decision to Publicly Censure Xingguang Agricultural Machinery Co., Ltd. and Relevant Responsible Persons,” publicly censuring *ST Xingnong’s then chairman He Dejun, then director and general manager Zheng Bin, then financial officer Wu Haijuan, and then general manager of Xingguang Zhiyuan Liu Tao. Regarding the above disciplinary measures, the SSE will report to the China Securities Regulatory Commission and the Zhejiang Provincial Local Financial Regulation Administration and record them in the database of corporate integrity for the securities and futures markets.

On April 30, 2025, *ST Xingnong disclosed an announcement titled “Announcement on Implementing Delisting Risk Warnings and Suspension,” stating that, because the lower of the net profits before and after deduction of non-recurring profit or loss for the 2024 fiscal year, as audited, was negative, and because operating revenue after deducting business income unrelated to the main business and income without commercial substance was below RMB 300 million, the company’s stock has been subject to delisting risk warnings starting May 6, 2025. If the company’s 2025 annual report shows the circumstances stipulated in Article 9.3.7 of the “Shanghai Stock Exchange Stock Listing Rules,” the company’s stock may be delisted by the Shanghai Stock Exchange. Investors are kindly reminded to be aware of investment risks.

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