Suspected of insider trading, one of Pengyao Environmental's actual controllers has been indicted.

Log in to the Sina Finance APP and search for [Information Disclosure] to view more evaluation levels.

每经记者|赵李南 每经编辑|杨军

On March 20, Pengyao Environmental Protection (SZ300664, stock price 6 yuan, market value 4.5 billion yuan) released a significant announcement.

The reporter from the Daily Economic News noticed that one of the actual controllers of Pengyao Environmental Protection, Wang Hongchun, received a “Prosecution Letter” 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, as he was formally prosecuted for suspected insider trading.

Wang Hongchun was born in October 1964 and holds a bachelor’s degree and a senior economist title.

As early as 1984, Wang Hongchun began engaging in environmental protection and, over the following years, transformed Pengyao Environmental Protection into a well-known company in the field of environmental water treatment.

Throughout the development history of Pengyao Environmental Protection, Wang Hongchun played an extremely crucial role. The predecessor of Pengyao Environmental Protection was a core subsidiary of “Asia Environmental Protection,” a company listed on the main board of the Singapore Stock Exchange. Under the operation of the Wang brothers, the company completed privatization and a complex domestic asset restructuring between 2011 and 2012, ultimately going public with an initial public offering in 2018 and listing on the Growth Enterprise Market.

The board of directors of Pengyao Environmental Protection had previously highly praised Wang Hongchun, stating that he “made significant contributions to the establishment, development, and listing of the company, playing an important role in the company’s strategic layout and operational management.”

However, at the beginning of 2021, Wang Hongchun made an unexpected decision. On January 10, 2021, the board of directors of Pengyao Environmental Protection received a written resignation letter from Chairman Wang Hongchun. The announcement disclosed that, due to the company’s development needs and personal reasons, Wang Hongchun proposed to resign from his positions as Chairman of the Third Board of Directors, Director, Member of the Board’s Strategic Committee, and Member of the Board’s Nomination Committee.

According to the announcement at that time, Wang Hongchun’s original term was supposed to last until January 17, 2022, when the Third Board of Directors would end, but he chose to resign early and did not hold any position in the company after his resignation. The company also stated that his resignation would not affect the normal operation of related work within the company.

As time progressed to early 2024, a notice from Pengyao Environmental Protection broke the silence. On February 8, 2024, Pengyao Environmental Protection disclosed that it received notification from the family of one of its actual controllers, Wang Hongchun, that he was criminally detained by the Wuxi Public Security Bureau for suspected insider trading.

From January 2021, when he resigned from all management positions, to February 2024, when he was criminally detained, three years had passed. At that time, Pengyao Environmental Protection stated that since Wang Hongchun did not serve as a director, supervisor, or senior management personnel of the company, the aforementioned matters would not constitute a significant impact on the company’s daily production and operations, and all work was carried out in an orderly manner.

Shortly after being criminally detained in February 2024, Wang Hongchun’s coercive measures underwent a change.

In March 2024, Pengyao Environmental Protection published an announcement disclosing that the company received the latest notification from Wang Hongchun’s family, indicating that his coercive measures had been changed to bail pending trial. The company reiterated to the market that Wang Hongchun did not hold any position as a director, supervisor, or senior management personnel, and the aforementioned matters would not significantly impact the company’s daily production and operations. Currently, the company’s daily operations are normal, and all work is proceeding in an orderly manner.

After a lengthy two years of bail pending trial and case review, the judicial authorities in Wuxi completed the prosecution review process.

According to the latest announcement released by Pengyao Environmental Protection on March 20, 2026, the company received notification from Wang Hongchun himself. The notice clearly stated that Wang Hongchun officially received the “Prosecution Letter” issued by the People’s Procuratorate of Wuxi City, Jiangsu Province, and the “Summons” issued by the Intermediate People’s Court of Wuxi City, Jiangsu Province, on March 19, 2026.

In the “Prosecution Letter,” the prosecution accused Wang Hongchun of insider trading and formally initiated a public prosecution.

It is worth noting that Pengyao Environmental Protection explicitly stated in the announcement that this lawsuit is a personal matter of the actual controller and will not have a significant impact on the company’s daily production and operations.

“The company has established a sound governance structure and internal control mechanism, with daily management handled by the senior management team. Currently, the production and operational order of the company and its subsidiaries are normal, and various businesses are progressing steadily,” Pengyao Environmental Protection stated.

Pengyao Environmental Protection expressed that it will continue to pay attention to the subsequent developments of relevant matters and will strictly comply with the provisions and requirements of relevant laws and regulations, fulfilling its information disclosure obligations in a timely manner.

Cover image source: Daily Economic News Media Library

Massive information and precise interpretation are all available in the Sina Finance APP.

责任编辑：刘万里 SF014