Ministry of Finance: Imposes administrative penalties on 30 individuals including Zhongxing Caiguanghua.

On April 10, the Ministry of Finance made an administrative penalty decision against ZTE Cai Guanghua. After investigation, ZTE Cai Guanghua found practice quality issues in multiple audit projects. In accordance with the provisions of the Certified Public Accountants Law, Accounting Law, and other laws and regulations, the Ministry of Finance, in accordance with the principles of legality, proportionality, and punishment, imposed administrative penalties on a total of 30 individuals, including ZTE Cai Guanghua. Among them, ZTE Cai Guanghua was given a warning, its business operations were suspended for one year, and illegal gains from audit projects such as Lou Haiqing were confiscated, with a total penalty of 9.213 million RMB. 16 signing CPAs were given warnings and various periods of suspension of their business operations, ranging from one month to one year, were imposed. Lou Haiqing's four enterprises and nine enterprise leaders were respectively warned, criticized, and fined as administrative penalties. The original text is as follows: The Ministry of Finance's administrative penalty decision on ZTE Cai Guanghua In June 2025, in accordance with the Certified Public Accountants Law of the People's Republic of China, the Accounting Law of the People's Republic of China, and other laws and regulations, the Ministry of Finance organized an inspection team to conduct a quality inspection on ZTE Cai Guanghua Accounting Firm (General Partnership) (referred to as ZTE Cai Guanghua), and extended the inspection to related enterprises. After investigation, ZTE Cai Guanghua found practice quality issues in multiple audit projects: First, in the audit of the financial statements of Dongxu Group Co., Ltd (referred to as Dongxu Group) from 2015 to 2019, professional skepticism was not maintained, necessary audit procedures were not performed or there were significant deficiencies in audit procedures, audit workpapers contained false records, and significant misstatements of Dongxu Group's inflated revenue, inflated profit and inflated cash funds were not identified. Second, in the audit of the financial statements of Dongxu Optoelectronics Technology Co., Ltd. (referred to as Dongxu Optoelectronics) from 2015 to 2020, professional skepticism was not maintained, necessary audit procedures were not performed or there were significant deficiencies in audit procedures, audit workpapers contained false records, and significant misstatements of Dongxu Optoelectronics' inflated revenue and profit and misappropriated funds were not identified. Third, in the audit of the financial statements of Dongxu Blue Sky New Energy Co., Ltd. (referred to as Dongxu Blue Sky) from 2018 to 2020, professional skepticism was not maintained, necessary audit procedures were not performed or there were significant deficiencies in audit procedures, and the significant misstatement of Dongxu Blue Sky's misappropriated funds was not identified. Fourth, in the audit of the annual financial statements of Lou Haiqing Tourism Development Investment Co., Ltd. in Huichuan district of Zunyi City (referred to as Lou Haiqing), Hanjia Design Group Co., Ltd. (now renamed Hanjia Digital Intelligence Science and Technology Group Technology Group Co., Ltd.), Heilongjiang Agriculture Marketing Co., Ltd., Paslin Digital Technology Co., Ltd., Shandong Zhongping Hengxin Asset Appraisal Co., Ltd. (now renamed Shandong Zhongping Hengxin Land Real Estate Asset Appraisal Co., Ltd.) and other enterprises, there were multiple violations of laws and regulations. During the investigation process, the Ministry of Finance maintained close communication and strengthened cooperation with the China Securities Regulatory Commission, sharing information and enhancing synergy. In response to the problems identified in the inspection, on April 7, 2026, the Ministry of Finance and the China Securities Regulatory Commission respectively made administrative penalty decisions in accordance with the Certified Public Accountants Law, Securities Law, etc. In accordance with Article 29 of the Administrative Penalty Law, the qualification penalty for ZTE Cai Guanghua was made by the Ministry of Finance, and the property penalty for the "Dongxu system" audit project was made by the China Securities Regulatory Commission. In accordance with the provisions of the Certified Public Accountants Law, Accounting Law, and other laws and regulations, the Ministry of Finance, in accordance with the principles of legality, proportionality, and punishment, imposed administrative penalties on a total of 30 individuals, including ZTE Cai Guanghua. Among them, ZTE Cai Guanghua was given a warning, its business operations were suspended for one year, and illegal gains from audit projects such as Lou Haiqing were confiscated, with a total penalty of 9.213 million RMB. 16 signing CPAs were given warnings and various periods of suspension of their business operations, ranging from one month to one year, were imposed. Lou Haiqing's four enterprises and nine enterprise leaders were respectively warned, criticized, and fined as administrative penalties. Next, the Ministry of Finance will continue to adhere to the principles of "strict supervision, zero tolerance," continuously increase financial and accounting supervision efforts, crack down on accounting and auditing fraud, continuously regulate the market economic order, and create a clean and fair market environment to provide strong support for promoting high-quality economic development.