Shengyuan Environmental Protection Co.,Ltd. (300867.SZ) recently issued a progress announcement regarding the use of idle自有资金 for investment and wealth management. In February and March 2025, the company's wholly-owned subsidiary, Xiamen Jinlingji Construction Engineering Co., Ltd., collectively signed the "Shenbo Hongtu Growth No. 1 Private Securities Investment Fund Contract" and a supplementary agreement with the private fund manager, Shenzhen Shenbo Xintou Investment Management Co., Ltd., and the fund custodian, China Merchants Securities Co.,Ltd. (CMSC). Using闲置自有资金, Xiamen Jinlingji subscribed to the "Shenbo Hongtu Growth No. 1 Private Securities Investment Fund" product as the sole investor, with a subscription amount of 60 million yuan.
The fund is categorized as an R4-level investment product, indicating medium-to-high risk. The fund manager, Shenbo Xintou, is registered with the Asset Management Association of China under code P1004558, and the fund custodian is China Merchants Securities Co.,Ltd.
On December 9, 2025, the company communicated with the fund manager, planning to redeem all fund shares within the week and requesting the latest net asset value statement. On December 12, 2025, the company received via email the fund's NAV statement from the manager, dated December 11, 2025. This statement showed a sharp decline in the fund's net asset value compared to the previous period's data sent on December 4, 2025.
As of December 25, 2025, the fund's latest net asset value per share was 0.1846, with a cumulative net value growth rate of -81.54%, resulting in a loss of approximately 46.92 million yuan. This loss exceeds 10% of the company's audited net profit from the most recent fiscal year. Upon discovering the significant loss, the company immediately formed a special task force to investigate the matter and register insider information. On December 14, 2025, task force members traveled to Shenzhen to communicate with the fund manager and ascertain the reasons for the loss. Following discussions, the fund manager proposed that an individual named Wen Tingtao assume joint liability for repaying the principal loss from the company's investment, which the company agreed to in an effort to promptly recover losses. On December 16, 2025, Wen Tingtao signed and issued a commitment letter agreeing to be jointly liable for repaying the entire principal loss incurred by Xiamen Jinlingji's investment in the fund manager, specifying clear payment deadlines. As of the announcement date, Xiamen Jinlingji had only received an initial payment of 2 million yuan from Wen Tingtao; the second payment (due December 19) and subsequent payments have not been received, indicating this stakeholder has not fully honored the commitment. Shengyuan Environmental Protection stated that after obtaining and reviewing complete documentation from the fund manager and custodian—including product asset valuation statements, account transaction details, daily NAV sequences, and custodian account flow statements—preliminary findings indicate the fund manager engaged in unauthorized transactions, violated information disclosure obligations, and even fabricated fund NAV information during its operations. The fund custodian was found to have failed in its duty to supervise and review, contributing to the substantial losses suffered by the investor, Xiamen Jinlingji. The company has filed a report with public security authorities, which has been accepted, and has also reported the matter to the Shenzhen Bureau of the China Securities Regulatory Commission, receiving proof of material submission. Beyond these reports, the company has engaged lawyers to pursue legal action, intending to initiate litigation or arbitration against the fund manager, Shenzhen Shenbo Xintou Investment Management Co., Ltd., and the fund custodian, China Merchants Securities Co.,Ltd. The company has submitted a fund redemption application to the manager and initiated the redemption process on the fund's recent开放日. Shengyuan Environmental Protection will closely monitor the redemption process to fully recover the fund's remaining assets as soon as possible. On December 27, Shengyuan Environmental Protection announced that the company and relevant personnel had received a warning letter from the Xiamen Securities Regulatory Bureau, alongside a regulatory letter concerning the company, Zhu Yuxuan, Zhu Hengbing, and Chen Wenyu. According to the progress announcement disclosed by Shengyuan Environmental Protection, after the company's subsidiary, Xiamen Jinlingji Construction Engineering Co., Ltd., became aware of the significant loss on the private fund product it subscribed to, it failed to disclose the information promptly, only making a public disclosure on December 26, 2025. Company Chairman Zhu Yuxuan, General Manager Zhu Hengbing, and Board Secretary Chen Wenyu failed to fulfill their duty of diligence. The Shenzhen Stock Exchange, in its regulatory letter, urged Shengyuan Environmental Protection, Zhu Yuxuan, Zhu Hengbing, and Chen Wenyu to seriously address these issues, learn from the experience, implement timely rectifications, and prevent recurrence. Due to the delayed disclosure of the significant loss on the private fund product subscribed to by its subsidiary, Xiamen Jinlingji Construction Engineering Co., Ltd., which was only disclosed on the evening of December 26, the Xiamen Securities Regulatory Bureau decided to take supervisory measures by issuing warning letters to Shengyuan Environmental Protection, Zhu Yuxuan, Zhu Hengbing, and Chen Wenyu. When contacted, relevant personnel from the custodian department of China Merchants Securities Co.,Ltd. stated that, according to the filed fund contract, the product is an R4-level (medium-to-high risk) investment without a stop-loss line约定, and its investment scope includes participating in margin trading, primarily investing in stocks listed on stock exchanges. After investigation, the company asserted it had fulfilled its custodian duties in accordance with regulations and the contract, strictly performing its supervisory and alert duties regarding violations such as investment比例 and leverage excesses. Regarding the announcement released by Shengyuan Environmental Protection, the personnel from CMSC's custodian department indicated that verification of the product NAV documents provided by the investor for verification showed that the materials had been tampered with. These documents included a link to the company's official document verification platform, which investors could access online to authenticate the materials themselves. The custodian claimed no knowledge of the commitment letter arrangement between the manager and the investor outside the fund contract and stated it had no legal obligation to supervise the fulfillment of such commitments between the parties.
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