Peng Yao Environmental Protection: Controlling Shareholder Wang Hongchun Indicted for Suspected Insider Trading

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On the evening of March 20, Pengyao Environmental Protection (300664.SZ) announced that on March 20, the company received a notice from one of its actual controllers, Wang Hongchun. He received a “Indictment” from the People’s Procuratorate of Wuxi City, Jiangsu Province, and a “Summons” from the Intermediate People’s Court of Wuxi City, Jiangsu Province. Wang Hongchun is being prosecuted for suspected insider trading.

According to the announcement, on February 8, 2024, the company disclosed an “Announcement on the Enforcement Measures Taken Against the Company’s Actual Controller,” stating that Wang Hongchun was criminally detained by the Wuxi Public Security Bureau for suspected insider trading. On March 8, 2024, Wang Hongchun’s enforcement measures were changed to bail pending trial.

Pengyao Environmental Protection stated in the announcement that as of the date of this disclosure, Wang Hongchun does not hold any positions as a director or senior management in the company. The above litigation is a personal matter of the actual controller and will not have a significant impact on the company’s daily operations. The company has established a sound governance structure and internal control mechanisms, with daily management handled by a senior management team. Currently, the company’s and subsidiaries’ production and operations are normal, and various businesses are progressing steadily. The company will continue to monitor the developments of this matter and will fulfill its information disclosure obligations in a timely manner in accordance with relevant laws and regulations.

Public information shows that Wang Hongchun was born in October 1964, is a Chinese national, holds no permanent residence abroad, and has a bachelor’s degree in International Economics and Trade from Huazhong University of Science and Technology. He is a senior economist and engineer. Wang Hongchun began working in the environmental water treatment industry in April 1984, founding Yixing Gaoceng Construction Environmental Protection Equipment Industrial Company. He has served as manager of Yixing Gaoceng Construction Environmental Protection Equipment Industrial Company, chairman of Yixing Pengyao Environmental Protection Co., Ltd., executive president of Asia Environmental Protection, chairman and general manager of contracting companies, general manager and chairman of Pengyao Environmental Protection.

Pengyao Environmental Protection’s main business includes providing one-stop services such as R&D, consulting, design, equipment manufacturing and sales, engineering contracting, project investment, and operation management related to environmental water treatment. The company’s main products include wastewater treatment, sludge treatment, engineering contracting, water supply, environmental protection equipment sales, consulting services, and others. Pengyao Environmental Protection was listed on the ChiNext Board on January 5, 2018. The founders are brothers Wang Hongchun and Wang Chunlin, who are the actual controllers of Pengyao Environmental Protection.

According to the company’s Q3 2025 interim report, the company’s revenue for the first three quarters was 1.136 billion yuan, a decrease of 13.44% year-on-year; net profit attributable to the parent company was 270 million yuan, an increase of 28.94% year-on-year; net profit after non-recurring gains and losses attributable to the parent was 167 million yuan, a decrease of 1.79%. In the third quarter alone, the company’s revenue was 387 million yuan, a decrease of 0.98% year-on-year; net profit attributable to the parent was 84.71 million yuan, an increase of 75.37%; net profit after non-recurring gains and losses attributable to the parent was 70.64 million yuan, an increase of 37.26%.