Xin Lang Cai Jing·2025-09-17 01:48Core Viewpoint - Gao Hong Co., Ltd. (000851) is facing legal actions due to allegations of financial misconduct, including the inflation of revenue and profits through false trade activities from 2015 to 2023 [1][2]. Summary by Sections Legal Proceedings - Gao Hong Co., Ltd. has submitted another claim for investor compensation to the Guiyang Intermediate People's Court, with ongoing efforts to accept further claims from investors [1]. - The law firm representing the investors has previously filed multiple claims and is actively pursuing the next steps in the legal process [1]. Financial Misconduct - The company inflated its reported revenue by a total of 6.94 billion, 24.52 billion, 24.20 billion, 32.59 billion, 56.34 billion, 24.83 billion, 18.05 billion, 7.35 billion, and 3.94 billion from 2015 to 2023, which accounted for 9.34%, 28.27%, 26.97%, 35.18%, 49.38%, 35.38%, 21.11%, 10.72%, and 6.65% of the reported revenue for each respective year [2]. - The company also inflated its reported costs by similar amounts, with total inflated profits reaching 67.36 million, 243.88 million, 242.24 million, 1.28 billion, 2.19 billion, 1.54 billion, 894.46 million, 370.74 million, and 788.21 million, representing 0.42%, 1.44%, 0.99%, 13.56%, 64.88%, 11.35%, 22.11%, 6.44%, and 0.50% of the reported profits [2]. Fraudulent Issuance - The non-public issuance of stocks in 2020 is classified as fraudulent, allowing investors who purchased shares between March 22, 2016, and July 31, 2024, to initiate claims [3]. Other Legal Cases - The law firm is also handling a separate case for Shihang High-Tech (002665), which has been filed in court, and is awaiting further arrangements [4]. - Shihang High-Tech has been found guilty of failing to disclose the use of raised funds for guarantees to controlling shareholders and non-operational fund occupation leading to related party transactions [4].