On the evening of September 19, Juewei Food Co.,Ltd. (603517) suddenly announced a trading halt.
According to the announcement, the company received an "Administrative Penalty Pre-Notice" (No. [2025] 7) from the Hunan Bureau of China Securities Regulatory Commission (CSRC) on September 19, 2025. Based on the content specified in the Pre-Notice and in accordance with relevant provisions of the "Shanghai Stock Exchange Stock Listing Rules (Revised April 2025)," the company's stock will be subject to other risk warnings.
The trading halt is scheduled for September 22, 2025, with implementation starting September 23, 2025. After implementation, the company's A-share abbreviated name will change from "Juewei Food" to "ST Juewei."
Simultaneously with the trading halt announcement, the company also published an announcement regarding the receipt of the Pre-Notice from CSRC.
The announcement revealed that due to suspected information disclosure violations, CSRC decided to investigate Juewei Food Co.,Ltd. on June 7, 2024. The investigation has now been completed.
The violations identified in the Pre-Notice showed that from 2017 to 2021, Juewei Food Co.,Ltd. failed to recognize revenue from franchise store renovation business, resulting in underreported operating revenue in annual reports. The proportions of unreported revenue relative to publicly disclosed operating revenue for the corresponding years were 5.48%, 3.79%, 2.20%, 2.39%, and 1.64% respectively. The company's annual reports from 2017 to 2021 failed to truthfully disclose operating revenue.
The aforementioned violations are supported by evidence including relevant contracts, bank transaction records, inquiry transcripts, and explanatory statements. The Hunan Bureau determined that Juewei Food's actions allegedly violated Article 63 of the Securities Law of the People's Republic of China (2005 revision) and Article 78, Paragraph 2 of the Securities Law of the People's Republic of China, constituting violations as described in Article 193, Paragraph 2 of the 2005 Securities Law and Article 197, Paragraph 2 of the Securities Law.
Regarding responsible personnel, the Pre-Notice specified: Dai Wenjun, who served as Chairman and General Manager of Juewei Food Co.,Ltd., was aware of the company's actual management of franchise store renovation business but failed to standardize management of this business or incorporate it into the listed company's operational and accounting systems. He signed the annual reports from 2017 to 2021 and is identified as the directly responsible supervisory personnel.
Peng Caigang, who served as Chief Financial Officer, arranged for finance department employees to lend personal bank accounts, failed to standardize accounting for franchise store renovation business, and signed annual reports from 2017 to 2019. He is identified as other directly responsible personnel.
Peng Gangyi, who served as Board Secretary, failed to standardize the company's information disclosure practices and signed annual reports from 2017 to 2020. He is identified as other directly responsible personnel.
Based on the investigation results, the Hunan Bureau decided to order Juewei Food Co.,Ltd. to make corrections, issue a warning, and impose a fine of 4 million yuan; issue a warning to Dai Wenjun and impose a fine of 2 million yuan; issue a warning to Peng Caigang and impose a fine of 1.5 million yuan; and issue a warning to Peng Gangyi and impose a fine of 1 million yuan.
It is noteworthy that Dai Wenjun remains the company's Chairman and controlling shareholder, while Peng Caigang and Peng Gangyi are no longer on the executive team.
On September 19, Juewei Food Co.,Ltd. closed at 15.25 yuan per share, down 0.97%, with a total market capitalization of 9.242 billion yuan.
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