East Group(SZ:300376) 2 1 Shi Ji Jing Ji Bao Dao·2025-06-24 11:09Core Viewpoint - ST Yishite (300376) has been found guilty of securities fraud due to financial misconduct, leading to a significant court ruling that mandates the company to compensate investors for their losses, with the former actual controller He Simu bearing joint liability [2][4]. Group 1: Financial Misconduct - Between 2017 and 2021, ST Yishite systematically inflated its financial statements through three fraudulent methods, resulting in a total revenue inflation of 4.074 billion yuan, inflated operating costs of 3.525 billion yuan, and inflated total profits of 34.29 million yuan [3]. - The company engaged in fictitious trade circular transactions, fabricated procurement and agency businesses for fund circulation, and utilized data center integration business for financing fraud [3]. Group 2: Regulatory Actions - The China Securities Regulatory Commission (CSRC) imposed a maximum fine of 8 million yuan on ST Yishite and a personal fine of 10 million yuan on He Simu, along with a ten-year market ban for him and penalties for over ten executives involved in the fraud [3]. - The case has become a typical example in the CSRC's 2024 crackdown on financial fraud [3]. Group 3: Legal Developments - The recent court ruling is a milestone for investor rights, allowing those who purchased ST Yishite shares between March 15, 2018, and May 11, 2023, and suffered losses to claim compensation based on securities law [4]. - The judgment has established critical dates for the implementation of false statements and their revelation, providing a precedent for similar cases in the future [4].