Core Viewpoint - The article highlights the ongoing regulatory crackdown on listed companies in China, focusing on financial fraud as the primary reason for penalties and investigations, with several companies facing significant fines and operational consequences [1][2][7]. Group 1: Companies Facing Penalties - Five A-share companies, including Sike Rui and Fudan Fuhua, have been penalized for financial misconduct, primarily involving false financial reporting and inflated revenues [1][2]. - Fudan Fuhua reported a cumulative profit inflation exceeding 80 million yuan over three years, leading to fines totaling over 7 million yuan for the company and its responsible individuals [1][3]. - Sike Rui was found to have fabricated sales and recognized revenue prematurely, resulting in inflated revenue and profit figures for 2022 [4][6]. Group 2: Specific Cases of Financial Misconduct - Fudan Fuhua's financial discrepancies included failing to account for construction costs related to a residential project, leading to inflated profits of 50.65 million yuan in 2019 and 2.59 million yuan in 2020 [2][3]. - Sike Rui's 2022 financial reports showed inflated revenue of 9.96 million yuan and inflated profits of 7.01 million yuan due to unverified sales and fabricated transactions [4][6]. - Creative Information also reported inflated revenues of 268 million yuan and 125 million yuan in its 2022 and 2023 reports, respectively, leading to penalties for the company and its executives [6]. Group 3: Consequences of Regulatory Actions - Companies found guilty of financial fraud, including Fudan Fuhua, Sike Rui, and Creative Information, will be subject to "ST" status, indicating special treatment, and will face trading restrictions [6]. - The penalties have resulted in immediate trading suspensions for affected companies, with changes to their stock designations and limits on price fluctuations [6]. - Henglituo, a company that had already been delisted, faced penalties for failing to disclose its 2024 annual report, resulting in fines for the company and its executives [7][8].