G.W(SH:600462) Jin Rong Shi Bao·2025-06-18 03:11Core Viewpoint - The article highlights the recent decision by the Shanghai Stock Exchange to terminate the listing of Hubei Jiuyou Investment Co., Ltd. (*ST Jiuyou) due to continuous financial fraud over four years, emphasizing that companies cannot evade accountability through delisting [1][4][8]. Group 1: Company Overview - *ST Jiuyou primarily engages in comprehensive marketing services and cosmetics sales, having been listed on the Shanghai Stock Exchange since 2003 [2]. - The company was placed under delisting risk warning starting May 6, 2024, due to negative net assets reported at the end of 2023 [2]. Group 2: Financial Misconduct - *ST Jiuyou has been found guilty of significant financial misconduct, including failing to disclose related party transactions and fabricating financial reports from 2021 to 2023 [3][2]. - The 2020 annual report was inflated by CNY 63.97 million (approximately USD 9.1 million), representing 471.03% of the reported profit for that year [3]. Group 3: Regulatory Actions - The company and its responsible parties face severe penalties from the China Securities Regulatory Commission (CSRC), including a fine of CNY 8.5 million (approximately USD 1.2 million) for the company and CNY 15 million (approximately USD 2.1 million) for the former actual controller, who is also banned from the market for ten years [3]. - The CSRC has adopted a "delisting does not exempt from liability" principle, ensuring that companies and responsible individuals are held accountable for their illegal activities even after delisting [8]. Group 4: Broader Industry Context - Another company, Shenzhen Guangdao Digital Technology Co., Ltd., is also facing potential delisting due to serious financial fraud, indicating a trend of increased scrutiny and regulatory action against financial misconduct in the industry [5][6]. - The regulatory environment is tightening, with the CSRC pursuing accountability for 35 delisted companies and their responsible parties, reinforcing the message that financial fraud will not be tolerated [8].