A stock market reporter from Southern Financial Group’s Investment Express
On April 23, Huanrui Century Joint Stock Co., Ltd. (stock abbreviation: Huanrui Century, stock code: 000892) disclosed that it had received a “Notice of Case Filing” from the China Securities Regulatory Commission (CSRC) and was being investigated for suspected violations of information disclosure laws and regulations. On the first trading day after the official announcement, the company’s stock opened at the daily limit down price of 5.51 yuan per share, a drop of 9.97%. The next day, April 24, it fell another 6.35%, significantly impacting market sentiment. This news brought the film and television company, which has produced several popular series, back into the spotlight and raised high market concerns about the company’s financial compliance.
Company simultaneously discloses and corrects accounting errors
Huanrui Century stated in its announcement that, as of now, it has not yet received the final investigation conclusion from the CSRC. This case filing will not have a significant impact on the company’s normal operations. The company will actively cooperate with all CSRC investigations and fulfill its information disclosure obligations in a timely manner. According to the company’s announcement, this case filing involves the matter of accounting for an additional deduction amount in 2022 and recognizing it as other income. That same evening, the company released a “Notice on Correction of Previous Accounting Errors and Retrospective Adjustments,” correcting and retrospectively adjusting accounting errors in its consolidated financial statements from the first quarter of 2022 to the 2023 fiscal year.
Ministry of Finance had previously determined and imposed a fine
It is noteworthy that this is not the first time Huanrui Century has come under regulatory scrutiny for financial issues. According to an administrative penalty decision (Cai Jian Fa [2025] No. 296) previously disclosed by the Ministry of Finance in November 2025, Huanrui Century incorrectly recorded an additional deduction amount of 15.4046 million yuan as other income in 2022, even though the actual deduction amount for value-added tax for that period was zero, resulting in an overstatement of other income by 15.4046 million yuan for 2022. The Ministry of Finance imposed a penalty of 50,000 yuan on Huanrui Century for this matter. According to relevant provisions of the value-added tax policy, additional deduction amounts can only be recognized when specific conditions are met and actual deductions occur. Enterprises should accurately calculate the actual tax优惠 amount in their accounting treatment.
Stock hits daily limit down, performance loss forecast and transformation pains
Notably, after the case filing news was disclosed, Huanrui Century’s stock price experienced significant volatility. On April 23, the company’s stock opened at the daily limit down price of 5.51 yuan per share. By the close, the stock remained at the limit down price of 5.51 yuan per share, a drop of 9.97%, with a trading volume of 127,100 lots, a turnover of 70.0095 million yuan, a turnover rate of 1.79%, and a total market value falling to 5.405 billion yuan. On April 24, the stock once again hit the limit down, closing at 5.16 yuan per share, down 6.35%.
Huanrui Century’s previously released 2025 performance forecast shows that although revenue from short drama business significantly increased, driving the company’s operating income up 52% year-on-year, the company still expects a net loss attributable to shareholders of the parent company of 200 million yuan. The company stated that the loss mainly comes from impairment losses recognized and losses during the transition period of business transformation.
On April 24, the Hengcai Bao & Weijing Financial 315 team stated that investors who bought the stock on or before April 22, 2026, and still held it at the close of trading on April 22, 2026, may be eligible to file claims (final claim conditions are subject to court determination).
Currently, claims against Huanrui Century are being solicited. Affected shareholders can contact the stock rights protection consultation channel of Investment Express (WeChat: tz315-wh) to seek professional financial 315 team support for
