Recently, four A-share companies - Shanghai Fudan Forward S&T Co.,Ltd. (600624.SH), Troy Information Technology Co.,Ltd. (300366.SZ), Juewei Food Co.,Ltd. (603517.SH), and Chengdu Screen Micro Electronics Co.,Ltd. (688053.SH) - announced that their stocks will be suspended for one day on the 22nd, with other risk warnings to be implemented starting from the 23rd.
According to the announcements, all four listed companies are subject to other risk warnings by exchanges due to false records in their disclosed annual report financial indicators, including revenue, total profit, net profit, and asset or liability items in balance sheets.
**Shanghai Fudan Forward S&T: False Records in Three Annual Reports, Inflated Profits Exceed 80 Million Yuan**
Shanghai Fudan Forward S&T announced that it received an "Administrative Penalty Prior Notice" from the Shanghai Bureau of the China Securities Regulatory Commission on September 19, 2025. The company's 2019, 2020, and 2023 annual reports contained false records, with cumulative underreported revenue of 53.2442 million yuan and cumulative inflated total profits of 81.0655 million yuan over three years. Specifically:
In 2019, operating costs were underreported by 50.6522 million yuan, inflating total profits by 50.6522 million yuan, accounting for 60.25% of the disclosed total profits for that year.
In 2020, operating costs were underreported by 2.592 million yuan, inflating total profits by 2.592 million yuan, accounting for 7.11% of the absolute value of disclosed total profits for that year.
In 2023, asset impairment losses were underreported by 27.8213 million yuan, inflating total profits by 27.8213 million yuan, accounting for 118.48% of disclosed total profits for that year.
Shanghai Fudan Forward S&T's violations spanned multiple years, mainly involving financial accounting issues of the Fuhua Wenyuan residential project. The Shanghai Bureau still plans to impose penalties: Shanghai Fudan Forward S&T will receive a warning and a fine of 4 million yuan; six former responsible persons including Zhao Wenbin, Chu Jianping, and Zhao Zhenxing will receive warnings and fines ranging from 500,000 to 1 million yuan.
Regarding stock trading, Shanghai Fudan Forward S&T's stock name will change to "ST Fuhua," and after implementing other risk warnings, the stock will trade on the risk warning board with daily price fluctuation limits adjusted to 5%.
**Troy Information Technology: Improper Revenue Recognition, Overreported Revenue Exceeds 390 Million Yuan**
Troy Information Technology's penalty stems from two business transactions in November 2022. At that time, the company conducted collaborative integrated machine sales business with State Grid Sichuan Integrated Energy Service Co., Ltd. and big data platform hardware and software sales business with Sichuan Zhongdian Qimingxing Information Technology Co., Ltd. However, Troy Information Technology did not actually have control over the goods when conducting these businesses, yet knowingly used the gross method to recognize revenue despite understanding the business transaction models, which violates the relevant provisions of "Accounting Standards for Business Enterprises No. 14 - Revenue."
This resulted in Troy Information Technology's 2022 annual report overreporting operating revenue by 267.8464 million yuan, accounting for 12.22% of the reported operating revenue for that period; and its 2023 semi-annual report overreporting operating revenue by 124.7034 million yuan, accounting for 15.84% of the reported operating revenue for that period.
According to the administrative penalty decision to be made by the Sichuan Securities Regulatory Bureau, Troy Information Technology will receive a warning and a fine of 4 million yuan; four responsible persons including former chairman Lu Wenbin, former general manager Wang Zhen, former deputy general manager and CFO Liu Jie, and headquarters finance director Shen Fu will receive warnings and fines of 1.5 million yuan, 1 million yuan, 800,000 yuan, and 700,000 yuan respectively.
For stock trading, Troy Information Technology's stock name will change from "Troy Information Technology" to "ST Troy," and the daily price fluctuation limit will remain 20% after implementing other risk warnings.
Troy Information Technology stated in its announcement that all matters described in the "Administrative Penalty Prior Notice" have been rectified. The company will promptly apply to the Shenzhen Stock Exchange to cancel the other risk warnings on its stock 12 months after the CSRC issues the administrative penalty decision.
**Juewei Food: Failed to Recognize Franchise Decoration Revenue for 5 Years, Highest Underreported Revenue Ratio Exceeds 5%**
Juewei Food's violations lasted for an extended period. From 2017 to 2021, the company consistently failed to recognize franchise store decoration business revenue, resulting in underreported operating revenue in each year's reports. The relevant amounts accounted for 5.48%, 3.79%, 2.20%, 2.39%, and 1.64% of the publicly disclosed operating revenue for the corresponding years respectively.
The Hunan Bureau pointed out that Juewei Food's above actions violated relevant laws and regulations, and plans to order rectification, issue a warning, and impose a fine of 4 million yuan; former chairman and general manager Dai Wenjun, former CFO Peng Caigang, and former board secretary Peng Gangyi will receive warnings and fines of 2 million yuan, 1.5 million yuan, and 1 million yuan respectively.
For stock trading arrangements, Juewei Food's stock name will change to "ST Juewei" with daily price fluctuation limits of 5%.
**Chengdu Screen Micro Electronics: Suspected of Fabricating Sales Business, Early Revenue Recognition, Improper Revenue Recognition**
Chengdu Screen Micro Electronics announced that it received an "Administrative Penalty Prior Notice" from the Sichuan Bureau of the CSRC. Investigation revealed that the company's 2022 annual report contained false records, inflating operating revenue by 9.9604 million yuan and total profits by 7.0054 million yuan.
The Sichuan Bureau still plans to impose penalties: Chengdu Screen Micro Electronics will receive a warning and a fine of 2 million yuan; former deputy general manager in charge of marketing Shu Xiaohui, former chairman Zhang Ya, former director and general manager Ma Weidong, and former CFO Tu Quanxin will receive warnings and fines of 1.2 million yuan, 800,000 yuan, 800,000 yuan, and 800,000 yuan respectively.
During the risk warning period, the company's stock will not trade on the Shanghai Stock Exchange risk warning board and will not be subject to risk warning board trading regulations. The stock's price fluctuation limit remains unchanged at 20%. Investors' cumulative purchases of company stock through competitive trading, block trading, and after-hours fixed-price trading on any given day shall not exceed 500,000 shares. The company's stock name will change from "Chengdu Screen Micro Electronics" to "ST Chengdu Screen Micro Electronics"; the extended name will change from "Chengdu Screen Micro Electronics" to "ST Chengdu Screen Micro Electronics."
Comments