Zhitong Finance App News, *ST Huichen (688500.SH) announced that the company received the “Decision on Administrative Supervision Measures” issued by the Beijing Regulatory Bureau of the China Securities Regulatory Commission on December 22, 2023. The decision states:

In June 2017, Huichen Co., Ltd. acquired 48% of the shares of Beijing Xintang Puhua Technology Co., Ltd. (Xintang Puhua for short), and Xintang Puhua became a company in which Huichen Co., Ltd. participated. In December 2020, Huichen Co., Ltd. further acquired 22% of Xintang Puhua's shares, and Xintang Puhua became a holding subsidiary of Huichen Co., Ltd. By fictitious business with a third party, signing sales contracts with no commercial substance, and confirming project revenue in advance, the “Beijing Huichen Capital Information Co., Ltd. initial public offering of shares and listing on the Science and Technology Innovation Board prospectus” disclosed by Huichen Co., Ltd. on July 13, 2020, as well as the annual report for 2020 to 2022 disclosed after the initial listing, there are false records. In 2018, Xintang Puhua inflated revenue and profits in 4 projects by signing sales contracts with no actual commercial substance, taking into account the effects of bad debt losses and impairment. As a result, Huichen Co., Ltd. inflated profit of 5.5531 million yuan in 2018, accounting for 7.33% of the total profit disclosed in the current period. In 2019, Xintang Puhua and others inflated revenue and profits in the five projects by signing sales contracts with no commercial substance and confirming project revenue in advance, causing Huichen Co., Ltd. to inflate revenue by 7.217 million yuan in 2019, accounting for 1.88% of the disclosed operating income; considering factors such as bad debt losses and impairment, the inflated profit was 17.8588 million yuan, accounting for 25.16% of the total profit disclosed in the current period. In 2020, Xintang Puhua and others inflated revenue and profits in 10 projects through fictional business with third parties, signing sales contracts with no commercial substance, and confirming project revenue in advance, causing Huichen Co., Ltd. to inflate operating income by 43.9681 million yuan in 2020, accounting for 11.29% of the disclosed revenue; taking into account factors such as bad debt losses and impairment, the inflated profit was 609.616 million yuan, accounting for 60.69% of the total profit disclosed in the current period. In 2021, Xintang Puhua and others inflated revenue and profits in 6 projects through fictional business and early confirmation of project revenue, causing Huichen Co., Ltd. to inflate revenue by 24.2413 million yuan in 2021, accounting for 5.09% of the disclosed operating income; taking into account the effects of bad debt losses and impairment, the profit was reduced by 17.21,119 million yuan, accounting for 36.45% of the total disclosed profit for the current period. Affected by related projects from 2018 to 2021, Huichen Co., Ltd. reduced profits by 105 million yuan in 2022 due to multiple bad debts and impairment of goodwill, accounting for 49.84% of the total profit disclosed in the current period.

The Beijing Securities Regulatory Bureau decided to issue administrative supervision measures against Liu Xiaokui, He Wei, Li Yonglin, Jiang Yi, Ma Shaoping, Hong Jinming, Zhang Wenli, Zhang Haiping, He Xiaoman, Wu Yunchuan, Zhu Fengjia, Yu Bingyi, etc. and record them in the securities and futures market integrity file.