The China Securities Regulatory Commission issued an administrative penalty decision and opened an investigation into the case where Hesin Certified Public Accountants failed to diligently provide annual report audit services to Qingdao Zhongcheng. It was discovered that Hexin had the following illegal facts: Hexin provided annual report audit services for Qingdao Zhongcheng, and there were false records in the 2017 to 2022 audit reports issued by Hexin; Hexin did not diligently and conscientiously audit Qingdao Zhongcheng's financial statements from 2017 to 2022. In the course of the audit practice of Qingdao Zhongcheng's financial statements from 2017 to 2022, Hexin Institute failed to be diligent and conscientious in accordance with the requirements of the “China Certified Public Accountants Practice Standards”. The audit report issued contains false records, violates the provisions of section 163 of the Securities Law, and constitutes an illegal act described in section 213 (3) of the Securities Law. The signatory accountants Ma Chunming and Zuo Wei are the supervisors directly responsible for the Heshin Institute's illegal acts. The Securities Regulatory Commission decided to order the correction against Hesin Certified Public Accountants, to confiscate 4,858,490.57 yuan of revenue from the audit business and fine of 14,575,471.71 yuan. Ma Chunming was warned and fined 600,000 yuan. Zuo Wei was warned and fined 400,000 yuan.

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