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According to the news from Financial Associated Press on December 8 (Reporter Wu Chao), due to false accounting information in the financial report, Jiangsu Skyray Instrument (300165.SZ) was fined 3 million yuan by the China Securities Regulatory Commission, and several executives, including chairman Liu Zhaogui, were punished. At the same time, the company's stocks will be subjected to other risk warnings by the exchange, changing to "ST Jiangsu Skyray."

According to the announcement, on December 6, Jiangsu Skyray Instrument received the "Advance Notice of Administrative Penalty" (Penalty No. [2024]187) issued by the China Securities Regulatory Commission. It was found that Jiangsu Skyray Instrument failed to recognize the service income from government and social capital cooperative model projects (referred to as PPP projects) according to accounting standards, resulting in an understatement of revenue by 0.614 billion yuan, an understatement of cost of goods sold by 0.612 billion yuan, and an understatement of total profit by 2.5209 million yuan, accounting for 3.76% of the total profit disclosed during that period.

The China Securities Regulatory Commission intends to decide: to warn Jiangsu Skyray Instrument and impose a fine of 3 million yuan; to warn then-chairman Liu Zhaogui and then-chief financial officer Wu Zhaobing, imposing a fine of 1 million yuan for each; to warn then-independent director and audit committee chairman Zhang Xin, imposing a fine of 0.6 million yuan.

Public information shows that Liu Zhaogui holds a doctorate in nuclear physics from Tsinghua University and has served as chairman of Jiangsu Skyray Instrument since 2008; Wu Zhaobing resigned from the position of chief financial officer in November 2022; Zhang Xin holds a master's degree in law from East China University of Political Science and Law, is a certified public accountant, has worked for several brokerages, and has served as chairman of la chapelle (603157.SH), which has been delisted from A-shares and is undergoing bankruptcy reorganization, resigning from all positions at Jiangsu Skyray Instrument since October 2023.

In addition, due to the confirmed false reporting of financial indicators in the disclosed annual report, the Shenzhen Stock Exchange will impose other risk warnings on Jiangsu Skyray Instrument's stocks. The stocks will be suspended from trading for one day starting December 9, and will resume trading from December 10, with the stock abbreviation changed from "Jiangsu Skyray Instrument" to "ST Jiangsu Skyray."

Previously, the Jiangsu Securities Regulatory Bureau had issued an "Administrative Supervision Measures Decision" (〔2024〕58) to Jiangsu Skyray Instrument and relevant responsible persons. It was found that the recognition and measurement of construction service income by Jiangsu Skyray Instrument did not comply with accounting standards, leading to misreporting in the 2021 Q3 report, 2021 annual report, 2022 Q1 report, 2022 semi-annual report, and 2022 Q3 report. The Jiangsu Securities Regulatory Bureau decided to issue warning letters to chairman Liu Zhaogui, general manager Ying Gang, and then-chief financial officer Wu Zhaobing as administrative supervision measures and to record this in the integrity archives of the securities and futures market.

Jiangsu Skyray Instrument primarily engages in analysis and detection instruments, environmental governance, in-vitro diagnostics, and third-party testing services. From 2021 to 2023, including the first three quarters of this year, the company's net income has continuously been in the red. At this year's performance briefing, regarding future development strategy issues, Jiangsu Skyray Instrument stated that it would no longer invest in new PPP projects for environmental governance, but rather focus on the application of analytical instruments in the development direction of the country's significant strategic industries.

According to a reporter from the Financial Association, Jiangsu Skyray Instrument has faced administrative penalties multiple times in recent years, with violations extending beyond the field of information disclosure. According to incomplete statistics from the reporter, there are at least 10 cases involving environmental protection, safety regulations, and other aspects of production and operation.

For example: In October last year, a safety incident occurred at its holding subsidiary, Anyue Jiangsu Skyray Water Affairs Co., Ltd, resulting in one death, and in January this year, the Anyue County Emergency Management Bureau issued an "Administrative Penalty Decision"; in July last year, its holding subsidiary, Qingshui Jingsheng Living Garbage Resource Utilization Co., Ltd., was found to be discharging pollutants without obtaining a discharge permit when inspected, and was issued an "Administrative Penalty Decision" by the Qingshui Branch of the Jinzhong City Ecological Environment Bureau in November last year; in June last year, its holding subsidiary, Jiangsu Guoce Detection Technology Co., Ltd., was discovered to have forged testing samples and sampling data when inspected, and was issued an "Administrative Penalty Decision" by the Ma'anshan City Ecological Environment Bureau in October last year; in September last year, the Fujian branch of Jiangsu Skyray Instrument was penalized by the Fujian Provincial Drug Supervision Administration, Xiamen Drug Inspection Office for illegal production activities in the pharmaceutical sector.