Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - Today, the futures price of the Container Shipping Index (European Line) (EC) oscillated at a low level with a slight upward trend. As of the close, the prices of EC contracts showed mixed movements. The main reason for the overall oscillatory trend of today's futures price is that although the US announced a 100% tariff increase on China, subsequent statements on social media by Trump and Vance were more conciliatory, leading to an oscillating macro - sentiment. Additionally, the near - month contracts rebounded due to CMA CGM's announcement of a November freight rate increase. In the short term, the futures price is likely to continue oscillating. It is necessary to closely monitor the cease - fire process in Gaza and Sino - US relations. Strategically, one can generally remain on the sidelines or attempt a 10 - 12 positive spread strategy [3]. 3. Summary by Relevant Catalogs 3.1 EC Risk Management Strategy Recommendations - **Position Management**: For those who have already acquired positions but have full capacity or poor booking volumes during the peak season and are worried about falling freight rates (long position in spot), to prevent losses, they can short the container shipping index futures according to the company's position to lock in profits. The recommended hedging tool is EC2512, with a selling recommendation and an entry range of 1700 - 1750 [2]. - **Cost Management**: When shipping companies increase blank sailings or the market is about to enter the peak season, and they hope to book cabins according to order situations (short position in spot), to prevent an increase in transportation costs due to rising freight rates, they can buy the container shipping index futures at present to determine the cabin - booking cost in advance. The recommended hedging tool is EC2512, with a buying recommendation and an entry range of 1450 - 1500 [2]. 3.2 Core Contradictions - As of the close, for the EC2510 contract, long positions decreased by 1414 lots to 9464 lots, short positions decreased by 1129 lots to 10337 lots, and trading volume decreased by 946 lots to 6566 lots (bilateral) [3]. 3.3利多解读 - On the evening of October 12, US Eastern Time, the US stock futures market rebounded after Friday's sharp decline. Dow Jones futures rose 0.7%, more than 300 points. S&P 500 and Nasdaq futures rose 0.9% and 1% respectively. Earlier in the morning, US President Trump softened his tone, saying that US - China relations "will be fine" and that the US wants to help China rather than harm it [4]. - CMA CGM officially announced a November price increase. Starting from November 1, the quoted price for the Asia - to - Northern Europe route will rise to $1500/TEU and $2600/FEU [4]. 3.4利空解读 - On October 10, 2025, Trump stated that the US would impose a 100% tariff on China and implement new export controls on key software products [5]. 3.5 EC Basis Daily Changes - For EC2510, the basis was - 97.60 points, with a daily change of - 8.30 points and a weekly change of - 79.09 points [6]. - For EC2512, the basis was - 530.70 points, with a daily change of 8.50 points and a weekly change of 125.81 points [6]. - For EC2602, the basis was - 328.10 points, with a daily change of - 21.90 points and a weekly change of 236.41 points [6]. - For EC2604, the basis was - 66.70 points, with a daily change of - 29.50 points and a weekly change of 81.41 points [6]. - For EC2606, the basis was - 236.2 points, with a daily change of - 34.10 points and a weekly change of - 7.62 points [6]. 3.6 EC Price and Spreads - For EC2510, the closing price was 1129.4 points, with a daily increase of 0.74% and a weekly decrease of 0.84% [8]. - For EC2512, the closing price was 1562.5 points, with a daily decrease of 0.54% and a weekly decrease of 12.07% [8]. - For EC2602, the closing price was 1359.9 points, with a daily increase of 1.64% and a weekly decrease of 19.29% [8]. - For EC2604, the closing price was 1098.5 points, with a daily increase of 1.25% and a weekly decrease of 13.41% [8]. - For EC2606, the closing price was 1268.0 points, with a daily increase of 1.55% and a weekly decrease of 14.53% [8]. - For EC2608, the closing price was 1395.8 points, with a daily decrease of 0.66% and a weekly decrease of 13.69% [8]. 3.7集运现舱报价（CY - CY，上海—鹿特丹） - On October 24, for Maersk's shipping schedule from Shanghai to Rotterdam, the total quote for 20GP was $1095, a $10 increase from the previous period, and the total quote for 40GP was $1830, a $20 increase from the previous period [10]. - In late October, for CMA CGM's shipping schedule from Shanghai to Rotterdam, the total quote for 20GP was $1210/1345, a $100 decrease from the previous period, and the total quote for 40GP was $2020/2292, a $200 and $199 decrease from the previous period respectively. For Hapag - Lloyd's shipping schedule from Shanghai to Rotterdam during the same period, the total quote for 20GP was $1185, a $50 decrease from the previous period, and the total quote for 40GP was $1935, a $100 decrease from the previous period [10]. 3.8 Global Freight Rate Index - SCFIS: European Route was 1031.8 points, down 14.7 points (- 1.40%) from the previous value [11]. - SCFIS: US West Route was 862.48 points, down 14.34 points (- 1.64%) from the previous value [11]. - SCFI: European Route was $1068/TEU, up $97 (9.99%) from the previous value [11]. - SCFI: US West Route was $1468/FEU, up $8 (0.55%) from the previous value [11]. - XSI: European Route was $1603/FEU, unchanged from the previous value [11]. - XSI: US West Route was $1478/FEU, down $5 (- 0.3%) from the previous value [11]. - FBX Comprehensive Freight Rate Index was $1540/FEU, unchanged from the previous value [11]. 3.9 Global Major Port Waiting Times - Hong Kong Port: On October 12, 2025, the waiting time was 0.832 days, a decrease of 0.207 days from the previous day, compared with 0.948 days in the same period last year [18]. - Shanghai Port: On October 12, 2025, the waiting time was 0.763 days, a decrease of 0.517 days from the previous day, compared with 1.246 days in the same period last year [18]. - Yantian Port: On October 12, 2025, the waiting time was 1.925 days, a decrease of 0.278 days from the previous day [18]. - Singapore Port: On October 12, 2025, the waiting time was 1.174 days, a decrease of 0.068 days from the previous day, compared with 0.515 days in the same period last year [18]. - Jakarta Port: On October 12, 2025, the waiting time was 1.414 days, an increase of 0.285 days from the previous day, compared with 1.206 days in the same period last year [18]. - Long Beach Port: On October 12, 2025, the waiting time was 1.892 days, a decrease of 0.007 days from the previous day, compared with 1.798 days in the same period last year [18]. - Savannah Port: On October 12, 2025, the waiting time was 1.355 days, an increase of 0.833 days from the previous day, compared with 1.864 days in the same period last year [18]. 3.10 Speed and Number of Container Ships Waiting at Suez Canal Port Anchorages - For 8000 + container ships, on October 12, 2025, the speed was about 15.618 knots, a decrease of 0.005 knots from the previous day, compared with 15.845 knots in the same period last year [26]. - For 3000 + container ships, on October 12, 2025, the speed was about 14.882 knots, a decrease of 0.037 knots from the previous day, compared with 15.081 knots in the same period last year [26]. - For 1000 + container ships, on October 12, 2025, the speed was about 13.352 knots, an increase of 0.116 knots from the previous day, compared with 13.538 knots in the same period last year [26]. - The number of ships waiting at the Suez Canal port anchorage on October 12, 2025, was 11, an increase of 1 from the previous day, compared with 6 in the same period last year [26].

Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints - Today, the futures price of the Container Shipping Index (European Line) (EC) opened lower, declined, and then fluctuated upwards. By the close, all EC contracts' prices had declined to varying degrees, with the 02 and 06 contracts dropping by over 10%. [3] - The initial low - opening and decline of today's futures price were mainly due to the preliminary agreement on the Gaza cease - fire negotiation, which negatively affected market sentiment and caused the futures price, especially that of the far - month contracts, to fall. Additionally, Maersk's announcement of the European Line booking quotes for late October, which were the same as the previous week's, led to a recovery in the futures price. [3] - In the short term, the futures price is likely to continue fluctuating. However, given past precedents, the Gaza cease - fire process may be volatile, so relevant situations need close attention. Strategically, it is advisable to mainly adopt a wait - and - see approach or conduct intraday short - term operations. [3] 3. Summary by Relevant Catalogs EC Risk Management Strategy Suggestions - **Position Management**: For those who have already obtained positions but have full capacity or poor booking volumes and are worried about falling freight rates (long position), they can short the container shipping index futures (EC2512) to lock in profits at an entry range of 1750 - 1800. [2] - **Cost Management**: When shipping companies increase the frequency of blank sailings or when the peak season is approaching, and they hope to book cabins according to order situations (short position), they can buy the container shipping index futures (EC2512) at an entry range of 1550 - 1600 to prevent rising freight rates from increasing transportation costs. [2] Market Data - **EC Contracts' Price and Position Data**: The EC2510 contract's long - position holders reduced their positions by 2031 lots to 12580 lots, and short - position holders reduced by 1651 lots to 13367 lots. The trading volume increased by 3842 lots to 20660 lots (bilateral). [3] - **EC Contracts' Closing Prices and Changes**: On October 9, 2025, EC2510 closed at 1119.9 points, up 0.84% daily and 0.49% weekly; EC2512 closed at 1688.0 points, down 2.53% daily and 0.50% weekly; EC2602 closed at 1406.0 points, down 14.41% daily and 11.47% weekly; EC2604 closed at 1119.9 points, down 9.95% daily and 11.19% weekly; EC2606 closed at 1277.5 points, down 13.05% daily and 11.61% weekly; EC2608 closed at 1438.6 points, down 9.85% daily and 9.73% weekly. [7] - **Global Freight Rate Index**: SCFIS for the European route was 1046.5 points, down 73.99 points or 6.60% from the previous value; for the US - West route, it was 876.82 points, down 44.43 points or 4.82%. SCFI for the European route was $971/TEU, down $81 or 7.70%; for the US - West route, it was $1460/FEU, down $176 or 10.76%. XSI for the European route was $1783/FEU, down $53 or 2.89%; for the US - West route, it was $1768/FEU, down $4 or 0.2%. The FBX comprehensive freight rate index was $1613/FEU, down $25 or 1.53%. [10] - **Container Shipping Quotes**: On October 24, Maersk's total quotes for 20GP and 40GP from Shanghai to Rotterdam were $1080 and $1800 respectively, the same as the previous week's opening quotes. [9] - **Global Major Ports' Waiting Times**: On October 8, 2025, the waiting time at Hong Kong Port was 1.543 days, up 0.097 days from the previous day; Shanghai Port was 0.821 days, down 0.322 days; Yantian Port was 1.516 days, down 0.315 days; Singapore Port was 0.620 days, up 0.109 days; Jakarta Port was 1.112 days, down 0.031 days; Long Beach Port was 2.209 days, up 0.002 days; Savannah Port was 1.583 days, up 0.565 days. [17] - **Container Ship Speeds and Waiting Ships in Suez Canal**: On October 8, 2025, the average speed of 8000 + container ships was 15.55 knots, up 0.067 knots from the previous day; 3000 + container ships was 14.941 knots, up 0.066 knots; 1000 + container ships was 13.276 knots, up 0.064 knots. The number of ships waiting at the Suez Canal port anchorages was 8, down 6 from the previous day. [25]

Core Viewpoint - The report highlights the current state and future trends of the biodiesel industry in China, emphasizing the production statistics of diesel and the implications for related companies [1]. Group 1: Industry Overview - As of August 2025, China's diesel production reached 17.06 million tons, marking a year-on-year increase of 4.6% [1]. - Cumulatively, from January to August 2025, China's diesel production totaled 129.619 million tons, reflecting a decline of 3% compared to the previous year [1]. Group 2: Related Companies - The listed companies in the biodiesel sector include China Petroleum (601857), China Petrochemical (600028), Huajin Co. (000059), Longyu Co. (603003), and Hengyi Petrochemical (000703) [1]. Group 3: Research and Consulting - Zhiyan Consulting is identified as a leading industry consulting firm in China, specializing in in-depth industry research reports, business plans, feasibility studies, and customized services [1].

Report Overview - Report Title: Container Industry Risk Management Daily Report - Date: September 30, 2025 - Author: Yu Junchen [1] Investment Rating - No investment rating provided in the report Core Viewpoints - Today, the futures price of the Container Shipping Index (European Line) (EC) opened lower, fluctuated upwards, and then significantly declined near the close. As of the close, the prices of EC contracts showed mixed trends. Near the National Day holiday, some investors gradually closed their positions. The futures price is influenced by both long and short factors, and in the short term, it is likely to continue to fluctuate. For the 12 - contract, low - long opportunities can be continuously monitored, and overall, it is advisable to mainly adopt a wait - and - see approach or conduct intraday short - term operations [3] Summary by Section EC Risk Management Strategy Recommendations - For position management, if the position has been acquired but the shipping capacity is full or the booked cargo volume is poor, and there are concerns about falling freight rates (long spot exposure), to prevent losses, short the container shipping index futures according to the company's position to lock in profits. Recommend selling the EC2510 contract at an entry range of 1200 - 1300 [2] - For cost management, if the shipping companies increase the frequency of blank sailings or the market peak season is approaching, and one hopes to book cabins according to the order situation (short spot exposure), to prevent the increase in transportation costs due to rising freight rates, buy the container shipping index futures at present to determine the cabin - booking cost in advance. Recommend buying the EC2510 contract at an entry range of 950 - 1050 [2] Core Contradictions - The EC2510 contract saw a reduction of 2161 long positions to 14922, a reduction of 2106 short positions to 15712, and a decrease in trading volume of 2414 to 17476 (bilateral) [3] - Bullish factor: MSC announced a price increase notice from the Far East to the Nordic route from October 15th to 31st, which has a certain positive impact on the market [3] - Bearish factors: The actual implementation of price increase notices this year has been infrequent, market expectations are relatively weak, MSC lowered the European Line quotes for mid - to - late October, and the new SCFIS European Line is lower than market expectations, pulling down the futures price valuation [3] Bullish Interpretations - MSC announced a price increase notice for mid - to - late October, with sea freight rates of $1320/TEU and $2200/FEU from the Far East to the Nordic region [4] - The Israeli military continues to attack the Gaza Strip, causing dozens of deaths in one day, and Hamas said it has not received any proposals from Trump or mediators [4] Bearish Interpretations - US President Trump and Israeli Prime Minister Netanyahu are scheduled to meet at the White House on the 29th. Trump said on the 28th that he hopes the two sides can finalize a Gaza peace plan, and Netanyahu said that the US and Israel are jointly formulating a new cease - fire plan, with details still under discussion [5] - MSC's European Line quotes declined in early to mid - October [5] EC Basis Daily Changes - On September 30, 2025, the basis of EC2510 was 9.89 points, with a daily increase of 4.40 points and a weekly decrease of 145.03 points [6] - The basis of EC2512 was - 611.41 points, with a daily increase of 24.40 points and a weekly decrease of 242.93 points [6] - The basis of EC2602 was - 522.31 points, with a daily increase of 24.20 points and a weekly decrease of 241.63 points [6] EC Price and Spread - On September 30, 2025, the closing price of EC2510 was 1110.6 points, with a daily decline of 0.39% and a weekly increase of 0.96% [7] - The closing price of EC2512 was 1731.9 points, with a daily decline of 1.39% and a weekly increase of 6.68% [7] - The closing price of EC2602 was 1642.8 points, with a daily decline of 1.45% and a weekly increase of 6.98% [7] Container Shipping Spot Cabin Quotes - For Maersk's sailings from Shanghai to Rotterdam on October 15th, the total quote for 20GP was $1144, a recovery of $5 compared to the previous period, and the total quote for 40GP was $1911, a recovery of $11 [9] - For Maersk's sailings on October 16th, the total quote for 20GP was $1090, a recovery of $5, and the total quote for 40GP was $1820, a recovery of $10 [9] - For MSC's sailings in the past two weeks, the total quote for 20GP was $855, a decrease of $60, and the total quote for 40GP was $1415, a decrease of $100. For mid - to - late October, the total quote for 20GP was $1245, a recovery of $330, and the total quote for 40GP was $2065, a recovery of $550 [9] - For Evergreen's sailings in mid - to - late October, the total quote for 20GP was $1355, a recovery of $300, and the total quote for 40GP was $2060, a recovery of $450 [9] Global Freight Rate Index - The latest value of SCFIS for the European route was 1120.49 points, a decrease of 134.43 points (- 10.71%) from the previous value [10] - The latest value of SCFIS for the US West route was 921.25 points, a decrease of 272.39 points (- 22.82%) from the previous value [10] - The latest value of SCFI for the European route was $971/TEU, a decrease of $81 (- 7.70%) from the previous value [10] Global Major Port Waiting Times - On September 29, 2025, the waiting time at Hong Kong Port was 2.020 days, an increase of 0.450 days from the previous day, and 0.362 days in the same period last year [17] - The waiting time at Shanghai Port was 1.135 days, an increase of 0.252 days from the previous day, and 2.284 days in the same period last year [17] - The waiting time at Yantian Port was 3.218 days, an increase of 0.955 days from the previous day, and 0.447 days in the same period last year [17] Ship Speed and Number of Container Ships Waiting at Suez Canal Port Anchorage - On September 29, 2025, the average speed of 8000 + container ships was 15.547 knots, an increase of 0.008 knots from the previous day, and 15.544 knots in the same period last year [25] - The average speed of 3000 + container ships was 14.741 knots, a decrease of 0.088 knots from the previous day, and 14.924 knots in the same period last year [25] - The average speed of 1000 + container ships was 13.291 knots, an increase of 0.068 knots from the previous day, and 13.437 knots in the same period last year [25] - The number of ships waiting at the Suez Canal port anchorage was 20, an increase of 1 from the previous day, and 7 in the same period last year [25]

Core Insights - Shanghai Longyu Data Co., Ltd. has made significant progress in the AI computing power sector through its subsidiary, Shanghai Yunman Yisuan Technology Co., Ltd., by signing a large-scale computing power service order worth approximately 178 million yuan [1] - The contract includes the leasing of a 200 PFlops high-performance TPU computing cluster, along with technical operation support and the overall architecture setup, aimed at enhancing AI model training and large-scale data analysis [1] - This collaboration marks a strategic milestone for Longyu Data in the AI computing power field, indicating a rapid commercialization phase for its computing power business and a successful expansion of its strategic layout in digital transformation and AI [1] Summary by Categories Company Developments - Longyu Data's subsidiary, Yunman Yisuan, has successfully signed its first large-scale computing power service order [1] - The total contract amount is approximately 178 million yuan, showcasing the company's capability in the AI computing sector [1] Service Offerings - The signed order includes a comprehensive solution featuring 200 PFlops high-performance TPU computing cluster leasing, technical operation support, and overall architecture setup [1] - This solution is designed to meet the computing power demands for advanced applications such as AI model training and large-scale data analysis, while also reducing total cost of ownership (TCO) [1] Strategic Implications - The partnership signifies a breakthrough in Longyu Data's strategic layout within the AI computing power industry [1] - It reflects market recognition of Yunman Yisuan's technology and service capabilities, further validating Longyu Data's expansion in the computing power business [1]

Group 1 - Regulatory bodies have intensified scrutiny on financial fraud, fund misappropriation, and information disclosure violations, with 20 companies receiving penalties since September, including one under investigation and five receiving advance notice of administrative penalties [1][2] - Over half of the penalties issued in September are related to financial fraud, with two penalties exceeding 100 million yuan, highlighting a zero-tolerance approach from regulators [2] - The principle of "delisting does not exempt from liability" is being enforced, with three delisted companies receiving penalties for financial fraud and failure to disclose reports on time, emphasizing that all market participants must adhere to compliance [3] Group 2 - Regulatory efforts aim to create a "survival of the fittest" market ecosystem, protecting investors' rights by punishing fraudulent companies and reallocating resources to well-governed firms [4] - The current administrative penalties serve as a basis for civil and criminal accountability, with a comprehensive accountability system expected to increase the cost of violations and uphold fairness in the capital market [4] - There is a need for improved preemptive regulation to prevent issues before they arise, with calls for better institutional design and enhanced responsibilities for intermediary organizations [4] Group 3 - The recent surge in penalties sends a clear message that regulatory bodies are committed to creating a more standardized, transparent, and vibrant capital market, thereby boosting investor confidence and enhancing the market's role in supporting the real economy [5]

Core Viewpoint - The article discusses the unusual circumstances surrounding the delisting of Longyu Co., Ltd. due to significant non-operating fund occupation by its major shareholder, amounting to 868 million yuan, and the subsequent repayment of 337 million yuan shortly after delisting, raising questions about the underlying capital maneuvers [1][3][13]. Group 1: Delisting and Financial Background - Longyu Co., Ltd. was delisted on July 3, 2025, primarily due to the major shareholder's 868 million yuan non-operating fund occupation and consecutive "unable to express opinion" audit reports for 2023 and 2024 [3][13]. - The company reported a net asset of 3.693 billion yuan and cash reserves of 1.1 billion yuan at the end of 2023, indicating a strong financial position prior to delisting [3][4]. - Despite external offers for high-priced acquisitions to help maintain its listing status, the major shareholder rejected these proposals [4]. Group 2: Post-Delisting Actions - Within 20 days post-delisting, Longyu's major shareholder and related companies repaid 337 million yuan, suggesting some repayment capability despite previous refusals to settle before delisting [5][13]. - The repayment raised suspicions as it contradicted typical market behavior where companies strive to protect their listing status [5]. Group 3: Acquisition and Corporate Governance - During the "information disclosure gap" between delisting and re-listing on the National Equities Exchange and Quotations, Longyu acquired 100% of Shanghai Yunman Yisuan Information Technology Co., Ltd. without public disclosure [6][8]. - The acquisition was linked to the repayment of the 337 million yuan, with allegations that funds were cycled through related parties, potentially harming minority shareholders [8][10]. - The new executive appointed during this period had significant ties to the acquired company, raising further questions about governance and transparency [7][8]. Group 4: Regulatory and Legal Implications - Regulatory scrutiny intensified following the discovery of significant undisclosed related-party transactions, leading to administrative penalties and investigations into financial misconduct [13][14]. - The remaining 500 million yuan in fund occupation remains a concern for minority shareholders, with potential plans to use company funds for further acquisitions to settle these debts [13][14]. - Legal actions have been initiated by affected investors, resulting in favorable judgments against Longyu for losses incurred due to misleading statements [14].

Core Viewpoint - The Chinese regulatory authorities have adopted a "zero tolerance" approach towards financial fraud, significantly increasing penalties for companies involved in such activities, aiming to create a market environment where fraud is discouraged [1][2][4]. Group 1: Regulatory Actions - ST Emergency announced a fine of 5.9 million yuan due to financial fraud in its 2022 annual report, marking the eighth penalty issued by regulators for financial fraud in September alone [1]. - Over 30 companies have received penalties for financial fraud this year, including both listed and delisted companies, indicating a strict stance against the notion of "retirement from the market" as an escape from accountability [2][4]. - The regulatory authorities have issued substantial fines, with several companies facing penalties exceeding 100 million yuan, enhancing the deterrent effect on the market [4][5]. Group 2: Legal Framework and Enforcement - The new securities law has significantly increased penalties for financial fraud and fraudulent issuance, with fines ranging from 10% to 100% of the illegally raised funds [5]. - The enforcement focus has shifted to include third parties involved in financial fraud, such as suppliers and intermediaries, broadening the scope of accountability [6][7]. - There has been an increase in civil and criminal liabilities for those responsible for financial fraud, enhancing the overall deterrent effect of regulatory actions [7]. Group 3: Market Impact and Ecosystem - The regulatory crackdown aims to foster a market ecosystem where entities are deterred from committing fraud, thereby protecting investors and maintaining market integrity [3][6]. - The emphasis on holding key individuals, such as controlling shareholders and actual controllers, accountable reflects a commitment to ensuring that all parties involved in financial misconduct face consequences [7]. - The approach to penalizing intermediaries, such as accounting firms and law firms, for their roles in facilitating fraud is intended to restore trust in the market and reinforce the responsibilities of these entities [6][7].

Core Viewpoint - The case of Shanghai Longyu Data Co., Ltd. highlights that delisting does not exempt companies from legal and regulatory responsibilities, as the regulatory authorities are increasingly stringent in pursuing accountability for financial misconduct and information disclosure violations [1][7]. Group 1: Financial Misconduct - Longyu Data has been found to have inflated revenue and profits in its annual reports from 2019 to 2022, with inflated revenues of 2.242 billion, 3.986 billion, 4.024 billion, and 4.288 billion respectively, and corresponding inflated profits of 5.73 million, 11.137 million, 9.5195 million, and 10.9332 million [2][3]. - The company engaged in fictitious trading activities involving metals, oil products, and ethylene glycol, leading to false records in its annual reports from 2019 to 2022 [2]. Group 2: Regulatory Actions - The Shanghai Securities Regulatory Commission has proposed a total fine of 38.1 million for Longyu Data and its responsible individuals due to violations of information disclosure regulations [4][5]. - The company was delisted from the Shanghai Stock Exchange in July 2023 after receiving adverse audit opinions on its financial reports for 2023 and 2024 [4][5]. Group 3: Accountability Measures - The regulatory authorities are committed to thoroughly investigating the company's actions prior to its delisting, ensuring that financial fraud is addressed [5][7]. - The actual controller of Longyu Data, Xu Zengzeng, faces a fine of 16.9 million and a 10-year ban from the securities market, while other responsible individuals are also subject to penalties totaling 9.7 million [5][6]. Group 4: Industry Implications - The trend of holding delisted companies accountable for past misconduct is becoming standard practice, as evidenced by similar cases involving other companies that faced penalties after delisting [7]. - The establishment of a comprehensive accountability system for companies that have delisted due to misconduct is expected to enhance compliance awareness among market participants and bolster investor confidence [8].

Core Viewpoint - The regulatory authority is intensifying penalties against delisted companies for financial fraud and information disclosure violations, signaling a "zero tolerance" approach to such misconduct in the capital market [1][3][4] Group 1: Regulatory Actions - Shanghai Longyu Data Co., Ltd. received a notice of administrative penalty from the Shanghai Securities Regulatory Bureau, proposing a total fine of 38.1 million yuan for financial fraud and other violations [1] - As of September 7, 2023, 24 delisted companies have received 25 penalties from the regulatory authority this year, nearing the total number for the entire previous year [1] - The regulatory body is pursuing a dual accountability approach, penalizing both the companies and their responsible individuals, with a focus on historical financial misconduct [3] Group 2: Impact on Companies - Longyu's financial misconduct included falsifying financial statements from 2019 to 2022 and failing to disclose non-operating fund occupation in annual reports for 2022 and 2023 [2] - Taihe Group was delisted on August 4, 2023, due to its stock price falling below 1 yuan for 20 consecutive trading days, and subsequently faced penalties for significant omissions in its annual reports from 2020 to 2022 [2] Group 3: Investor Protection - The regulatory framework is evolving to enhance investor protection, with civil and criminal accountability measures being implemented alongside administrative penalties [4] - There is a call for a comprehensive investor protection mechanism, including judicial remedies, compensation funds, and improved information disclosure practices for companies at risk of delisting [5] - The establishment of a "four-in-one" mechanism is proposed to ensure timely compensation and transparency for investors affected by delistings [5]