Shanghai real estate company faces $1.2 mln fines for multiple violations

2024-03-22 Editor : Mo Honge ECNS App Download

(ECNS)-- Shanghai Industrial Development Co. (SIDC) Ltd, primarily engaged in the real estate business, is facing penalties totaling 8.5 million yuan (about $1.2 million) due to allegations of failure to timely disclose anticipated losses, signing of significant contracts, and suspected of false records in annual reports for six consecutive years.

According to the "Notice of Administrative Penalties and Advance Notice of Market Exclusion" issued by the Shanghai Securities Regulatory Bureau, it was not until Jan. 12, 2022 that SICD disclosed its anticipated losses in an interim announcement, almost one month after it already determined the risk of operating losses due to unrecoverable accounts receivable at its controlling subsidiary Shanghai Shangshi Longchuang Intelligent Technology on Dec. 15, 2021.

In September 2020, SIDC and its wholly-owned subsidiary Shanghai Gaoyang Hotel Co., signed a framework agreement with the Land Development Center of Hongkou District, Shanghai. However, it failed to timely disclose this significant contract.

There were also suspicions of false reports, with a total inflated revenue of 4.722 billion yuan and an inflated total profit of 614 million yuan from 2016 to 2021.

Relevant senior executives are subject to fines. Warnings and fines of 4 million yuan were imposed on Zeng Ming, then legal representative and chairman of SICD, and Cao Wenlong, vice president and Chief Financial Officer, respectively. Other fines were also imposed on then SICD presidents and directors Xu Xiaobing and Tang Jun.

Cao was also banned from entering the securities market for 10 years. 

Following the "Notice", SIDC stock prices have fluctuated in recent days.



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