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

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, on March 19, 2026, regarding allegations of insider trading.

According to the announcement, on February 8, 2024, the company disclosed the “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 on suspicion of 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 personnel of the company. The aforementioned lawsuit 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 all business activities 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 of Pengyao Environmental Protection, and chairman.

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 the company.

According to the company’s 2025 third-quarter report, the total operating 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; and 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, revenue was 387 million yuan, down 0.98% year-on-year; net profit attributable to the parent was 84.71 million yuan, up 75.37% year-on-year; and net profit after non-recurring gains and losses was 70.64 million yuan, up 37.26% year-on-year.