ST Site announced on the evening of September 27 a rectification report regarding the Anhui Securities Regulatory Bureau's order for corrective measures. The company had multiple issues including illegal use of non-public offering proceeds, illegal lending of funds to related parties, inaccurate periodic report disclosures, and imperfect corporate governance and internal controls. Some funds occupied by related parties have still not been recovered. The rectification report shows that from 2016 to 2019, the company illegally used non-public offering proceeds involving 115 million yuan, causing losses of 33.0146 million yuan. Its wholly owned subsidiary Xinhong Grand Health illegally lent 110 million yuan to Dongchen Health under the guise of custody. The company also engaged in fabricating engineering projects, revenues, and costs, resulting in false financial data disclosures for 2024 and prior years. The Anhui Securities Regulatory Bureau had previously ordered the company to make corrections, issued a warning, and imposed a fine of 6 million yuan. It also issued warnings to seven individuals including then chairman Jin Guoqing and then general manager Jin Zhenghui, with combined fines of 12.6 million yuan. Regarding fund recovery, the company required Ningguo Agricultural Materials to return all occupied funds and pay occupation fees by September 27, 2026, but as of now Ningguo Agricultural Materials has not returned them, involving 36.8063 million yuan. Dongchen Health still has 32 million yuan in occupied funds unrecovered, and Xuancheng Orthopedic Hospital has been ruled into bankruptcy reorganization. The company stated that the above fund occupation is non-operating fund occupation by other related parties and will not cause the company to trigger relevant provisions of the Shenzhen Stock Exchange stock listing rules, and trading of its shares will not be suspended.
Anhui Sierte Fertilizer Industry Ltd CoAnhui Securities Regulatory Bureau ordered corrective measures and fined the company 6 million yuan for illegal use of proceeds, related-party lending, and false disclosures.
Ningguo Agricultural Materials has not returned 36.8063 million yuan in occupied funds owed to ST Site by the September 27, 2026 deadline.
Xinhong Grand Health illegally lent 110 million yuan to Dongchen Health under the guise of custody, part of the violations cited in the rectification report.
Dongchen Health still has 32 million yuan in occupied funds unrecovered from its illegal custody lending arrangement with Xinhong Grand Health.
Xuancheng Orthopedic Hospital has been ruled into bankruptcy reorganization, leaving its occupied funds unrecovered.
