Sou Hu Cai Jing·2025-09-21 14:24Core Viewpoint - *ST Gaohong faces the risk of being delisted due to its stock price falling below par value, with a closing price of 0.48 yuan as of September 19, 2025, and has been below 1 yuan for 15 consecutive trading days [1][5]. Group 1: Delisting Risks - The company announced that its stock may be terminated from listing if it continues to trade below 1 yuan for 20 consecutive trading days, as per the Shenzhen Stock Exchange listing rules [1]. - The company is also at risk of being subject to mandatory delisting due to significant legal violations, as indicated by a notice from the China Securities Regulatory Commission (CSRC) regarding fraudulent issuance of stocks and false financial reporting from 2015 to 2023 [2]. Group 2: Financial Misreporting - The CSRC's notice revealed that the company inflated its reported revenue and costs significantly over multiple years, with inflated revenues ranging from 6.94 million yuan to 56.34 million yuan, constituting up to 49.38% of reported revenues in certain years [3]. - The inflated profits reported by the company also varied, with the highest inflation reaching 2,190.52 million yuan, which accounted for 64.88% of the total reported profit in 2020 [3]. Group 3: Stock Performance and Market Reaction - The company’s stock has experienced significant volatility, with a cumulative price drop exceeding 12% over three consecutive trading days in September 2025, indicating abnormal trading conditions [4]. - Despite the possibility of a continuous price increase, the stock price would still not reach the par value of 1 yuan even with five consecutive limit-up trading days [5]. Group 4: Company Background - *ST Gaohong, established by the China Academy of Telecommunications Technology, is a high-tech enterprise that has developed a business structure focusing on digital applications, information services, and IT sales since its listing in 2003 [8].