Jinzhou Port Vice President Resigns Following Arrest

The China Securities Regulatory Commission ordered Jinzhou Port to pay a fine of 20 million yuan for disclosure violations, according to a Shanghai Stock Exchange filing on April 30.

The regulator's probe found that the Chinese port operator failed to disclose its 2024 semi-annual report on time and inflated profits through fictitious trade transactions and improperly reported port service revenues in its 2022 and 2023 annual reports, as well as its first quarter report in 2024.

The securities regulator also imposed a fine of between 800,000 yuan and 9 million yuan on some of the company's senior officials, some of which were the company's former chairman and vice chairman during the report periods.

Jinzhou Port incurred undistributed losses of 5.39 billion yuan in 2024, according to a Shanghai Stock Exchange filing on April 30.

The losses exceeded one-third of the Chinese port operator's paid-in capital of 2 billion yuan.

The losses were attributed to credit impairment losses of 2.24 billion yuan due to overdue payments, impairment losses of 3.98 billion yuan on its long-term equity investments, impairment losses of 83.3 million yuan on idle assets, and 90.4 million yuan in provisions from unrecoverable container compensation payments and estimated recoverable repair fees for subleased containers.

The losses reduced the company's 2024 total profit by 6.50 billion yuan, the filing said.