Kechuang Information Receives Administrative Penalties for Illegal Information Disclosure Violations; Company and Three Senior Executives Fined a Combined 3.7 Million Yuan

On March 17, 2026, Hunan Kechuang Information (Rights Protection) Technology Co., Ltd. (Stock Code: 300730, Stock Abbreviation: Kechuang Information) announced that the company and relevant responsible persons have received the “Administrative Penalty Decision” ([2026] No. 4) issued by the Hunan Regulatory Bureau of the China Securities Regulatory Commission. Due to violations in information disclosure, including fictitious revenue, costs, and profits in the company’s 2023 semi-annual report, the company was fined 1.5 million yuan. Former Chairman Fe Yaoping, former Director, General Manager, and CFO Li Jie, and former Financial Manager Long Zhong were fined 800,000 yuan, 800,000 yuan, and 600,000 yuan respectively, totaling 3.7 million yuan in penalties.

The Hunan Securities Regulatory Bureau found that in April 2023, when Kechuang Information conducted server and application software sales with Dayou Digital Technology (Beijing) Co., Ltd., the company did not have control over the goods but used the gross method to recognize revenue, which violated the relevant provisions of “Accounting Standard for Business Enterprises No. 14—Revenue.” Additionally, during the preparation of consolidated financial statements, the company incorrectly adjusted the amounts of these transactions. These behaviors led to an overstatement of operating income by 46.32 million yuan (33.57% of the disclosed revenue), an overstatement of operating costs by 32.60 million yuan (33.57%), and an overstatement of profits by 12.79 million yuan (71.94%). The company disclosed a “Correction of Previous Accounting Errors” announcement on April 27, 2024, and corrected the previous financial data.

The announcement states that Fe Yaoping, as the then Chairman, was responsible for the company’s marketing management department and was fully responsible for the business with Dayou Technology. He was aware of the business model but did not implement control measures over related accounting treatments and financial disclosures. Li Jie, as the then Director, General Manager, and CFO, was responsible for the company’s finance department and fully managed financial work; he was aware of the business model but did not control related accounting treatments and disclosures. Long Zhong, as the then Financial Manager, directly participated in contract review and accounting for the Dayou Technology business, made errors in accounting treatment, and did not carefully review the financial statements. The Hunan Securities Regulatory Bureau determined that Fe Yaoping and Li Jie were directly responsible managers, and Long Zhong was another person directly responsible.

According to Article 197, Paragraph 2 of the Securities Law, the Hunan Securities Regulatory Bureau decided:

Kechuang Information stated that the violations involved in information disclosure do not involve mandatory delisting, major illegal delisting, or other risk warnings as stipulated by the Shenzhen Stock Exchange Growth Enterprise Market Listing Rules. As of the date of this announcement, the company’s operations and business activities are normal, and these issues will not have a significant impact on the company’s production and operation. The company sincerely apologizes to investors for this matter and will conduct deep reflection, strengthen internal governance, and improve the quality of information disclosure.

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