(Yicai Global) April 21 -- China's main securities regulator has handed struggling carmaker Brilliance Auto Group a fine of CNY53.6 million (USD8.3 million) for financial fraud.

The indirect shareholder of Jinbei Automotive and relevant persons have received notices about the penalty imposed by the China Securities Regulatory Commission due to inflated profits, Jinbei Automotive said in a statement yesterday.

Senior executives, including former Chairman Qi Yumin and current Chairman Yan Bingzhe, were fined between CNY80,000 (USD12,309) and CNY600,000 (USD92,319).

The latest setback adds to Brilliance Auto's troubles. The state-backed company started reorganization last November amid its debt crisis that started forming after its sales dropped dramatically in 2016.

In August 2019, Brilliance Auto had secured approval to issue bonds based on its financial reporting in 2017 and 2018 that turned out to be false, according to yesterday's statement. The Shenyang-based company had reported investment income from selling a stake in its unit but the transfer was not completed.

The Chinese BMW partner had issued four private bonds totaling CNY5 billion (USD769.3 million) in 2019, as well as CNY1.4 billion in private bonds last year.

Moreover, Brilliance Auto allegedly raised CNY6.5 billion by issuing six super and short-term commercial papers on the interbank bond market while making use of the fake financial reports. In January, the Shanghai Stock Exchange issued a disciplinary penalty for the 18-year-old automaker due to its bond listing violations.

The car company had CNY52.4 billion (USD8.1 billion) in debts as of June 30, 2020, raising its debt-to-assets ratio to over 110 percent, according to its latest financial report.

Brilliance Auto's Hong Kong-listed shares [HKG:1114] have been suspended since March 31.

Editor: Emmi Laine, Xiao Yi