He Xin Certified Public Accountants was fined and confiscated 19.43 million yuan by the CSRC for issuing an audit report for Qingdao Zhongcheng that contained false records.

The China Securities Regulatory Commission (CSRC) issued an administrative penalty decision, conducting an investigation into the case of Hexin Certified Public Accountants (Special General Partnership) failing to exercise due diligence in providing annual report audit services for Qingdao Zhongcheng. Upon investigation, the following illegal facts were ascertained against Hexin: Hexin provided annual report audit services for Qingdao Zhongcheng, and the annual audit reports issued for the years 2017 to 2022 contained false records; Hexin failed to exercise due diligence during the audit of Qingdao Zhongcheng's annual financial statements for the years 2017 to 2022. During the practice of auditing Qingdao Zhongcheng's annual financial statements for the years 2017 to 2022, Hexin failed to exercise due diligence as required by the Chinese Certified Public Accountant Practice Standards, and the audit reports it issued contained false records, violating the provisions of Article 163 of the Securities Law, and constituting the illegal act described in Paragraph 3 of Article 213 of the Securities Law. For Hexin's illegal acts, the signing accountants Ma Chunming and Zuo Wei were the directly responsible persons in charge. The CSRC decided: to order Hexin Certified Public Accountants to rectify, confiscate audit business revenue of 4,858,490.57 yuan, and impose a fine of 14,575,471.71 yuan. To give Ma Chunming a warning and impose a fine of 600,000 yuan. To give Zuo Wei a warning and impose a fine of 400,000 yuan.