Well-known brand halts trading today as company and chairman face penalties.
Suspected of information disclosure violations, the braised food giant Juewei Food Co.,Ltd. will be marked with "ST" warning status.
Juewei Food Co.,Ltd. (Juewei Food, 603517.SH) recently announced that due to suspected violations of information disclosure laws and regulations, on June 7, 2024, the China Securities Regulatory Commission (CSRC) decided to open an investigation into Juewei Food. On September 19, 2025, the company received an "Administrative Penalty Prior Notice" issued by the Hunan Bureau of the CSRC.
The notice revealed that from 2017 to 2021, Juewei Food failed to recognize revenue from franchise store renovation services, resulting in underreported operating revenue in annual reports. The underreported amounts represented 5.48%, 3.79%, 2.20%, 2.39%, and 1.64% of the publicly disclosed operating revenue for the corresponding years respectively. The company's annual reports from 2017 to 2021 did not accurately disclose operating revenue.
The Hunan Bureau of the CSRC determined that Juewei Food's actions constitute suspected violations of relevant laws. The bureau decided to order Juewei Food to make corrections, issue a warning, and impose a fine of 4 million yuan; issue a warning to former Chairman and General Manager Dai Wenjun and impose a fine of 2 million yuan; issue a warning to former Chief Financial Officer Peng Caigang and impose a fine of 1.5 million yuan; and issue a warning to former Board Secretary Peng Gangyi and impose a fine of 1 million yuan.
The announcement stated that according to relevant regulations, the company's shares will be subject to other risk warnings, with the A-share abbreviation changing to "ST Juewei," effective from September 23, 2025, with trading suspended on September 22. After implementing other risk warnings, the company's shares will trade on the risk warning board, with daily price fluctuation limits of 5%.
In recent years, the traditional braised food industry has encountered growth bottlenecks. Data from Narrow Door shows that since 2022, the number of new Juewei duck neck store openings began to decline. Currently, there are 10,725 Juewei duck neck stores. According to Juewei Food's financial reports, as of the end of June 2024, Juewei Food had a total of 14,969 mainland stores. Based on this calculation, the company has closed 4,244 stores over the past year or so.
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