AECC Aero-Engine Control sanctioned by Jiangsu CSRC

AECC Aero-Engine Control (SZSE:000738) and its chief financial officer, Yan Congmin, were issued a warning letter by the Jiangsu Securities Regulatory Bureau (Jiangsu CSRC) on December 12, 2025. The regulatory action was taken due to irregularities in the company's use of raised funds for cash management and unapproved related-party transactions.

The company engaged in cash management activities that exceeded approved limits and durations. Specifically, an excess amount of idle raised funds was used for a 7-day notice deposit without timely approval and disclosure. Furthermore, certain wealth management products purchased by AECC Aero-Engine Control remained outstanding beyond the board-approved period, leading to a failure to fulfill review procedures and disclosure obligations in a timely manner.

Additionally, AECC Aero-Engine Control continued a financial services agreement with AECC Group Finance Co. Ltd., a related party, beyond its three-year validity period, which expired on November 15, 2024, without proper re-approval and disclosure until December 20, 2024. The company stated it will reflect on the issues, strengthen internal controls, and comply with regulatory requirements.