Zhongxin Jingwei, May 22, due to inaccurate financial information in the annual report from 2019 to 2022, * ST Dongyuan was criticized in a notice as the chairman and then president of the company in time, and two then financial directors received the supervision letter.
On the 22nd, Shenzhen Stock Exchange issued the Decision on Notification of Criticism and Punishment to Beijing Oriental Garden Environment Co., Ltd. and Related Parties.
Screenshot of Shenzhen Stock Exchange announcement, the same below According to the facts found out in the Administrative Punishment Decision of Beijing Securities Regulatory Bureau, * ST Dongyuan and related parties have the following violations:
In June 2018, the company won the bid for the whole area tourism PPP project in Qintang District, Guigang City, Guangxi (hereinafter referred to as Guigang Project in Guangxi). In December 2019, according to the settlement of cost deduction with suppliers, the company reduced the relevant costs of Guangxi Guigang Project by 22.3219 million yuan, but did not reduce the operating revenue by 35.4184 million yuan in 2019, which will not be adjusted until 2022. This situation led to the false increase of revenue, operating profit and assets in 2019 accounting for 0.44%, 45.28% and 0.08% respectively, the false increase of assets in 2020 and 2021 accounting for 0.08% and 0.08% respectively, and the false decrease of revenue and operating profit in 2022 accounting for 1.05% and 0.62% respectively. The financial information in the Company's 2019 to 2022 annual report was inaccurate, and the Company did not correct the above misstatement until January 30, 2024.
*The above behavior of ST Dongyuan violates the provisions of Articles 1.4 and 2.1.1 of the Stock Listing Rules (Revised in 2023)* Mu Yingjie, the chairman of ST Dongyuan at that time, Liu Weijie, the president and director at that time, failed to scrupulously abide by their duties, fulfill their obligations of integrity and diligence, and violated the regulations, and they were responsible for the above violations of * ST Dongyuan.
The Shenzhen Stock Exchange has decided to, Give a notice of criticism to * ST Dongyuan; Mu Yingjie, then the chairman of * ST Dongyuan, and Liu Weijie, then the president and director, were given a notice of criticism.
On the same day, Shenzhen Stock Exchange disclosed the Supervision Letter on Cheng Xianghong and Wang Tanliang. Due to the above matters, Cheng Xianghong and Wang Tanliang, the then financial directors of the company, failed to scrupulously abide by their duties and fulfill their obligations of honesty and diligence, in violation of regulations.
According to the official website, Oriental Garden was founded in 1992, and became the first listed company in China's garden industry in 2009. In 2019, Beijing Chaoyang SASAC became the actual controller of Oriental Garden. Oriental Garden mainly develops twelve product lines, including artistic garden, water system management, mine restoration, ecological afforestation, ecological agriculture, dynamic culture and tourism, public products, product innovation, environmental protection plants, sewage treatment, renewable resources, and low-carbon wisdom.
In 2023, the company's annual audited net assets at the end of the period were negative, which touched the specified delisting risk warning situation for the shares, and the company's shares were subject to delisting risk warning on April 30, 2024.
In the first quarter of this year, * ST Dongyuan achieved a revenue of 347 million yuan, down 31.71% year on year; Net profit loss attributable to parent company was 288 million yuan. (Zhongxin Jingwei APP)
