Jiayuan Technology announced that it has received a Prior Notice of Administrative Penalty from the China Securities Regulatory Commission, after an investigation was launched into suspected illegal information disclosure. The investigation found that from 2019 to 2022, the company engaged in premature revenue recognition and transactions lacking commercial substance, causing revenue to be overstated by 20.156 million yuan, understated by 6.8765 million yuan, overstated by 28.0338 million yuan, and understated by 25.6247 million yuan respectively, while total profit was overstated by 16.1384 million yuan, understated by 15.696 million yuan, overstated by 18.0393 million yuan, and understated by 16.3445 million yuan respectively. The CSRC intends to order the company to make corrections, issue a warning, and impose a fine of 6 million yuan. Wang Jin, Zhu Weihua, Liu Xu, Yin Mingjun and other responsible persons will be given warnings and fined 3 million yuan, 2 million yuan, 2 million yuan, and 1.5 million yuan respectively. The company judges that this matter triggers the circumstances for being subject to other risk warnings, but has not yet triggered the circumstances for mandatory delisting due to major violations.
Jiayuan Science and Technology Co.Ltd.CSRC penalty for revenue overstatement and illegal disclosure
