Qibu Co.,Ltd.(SH:603557) Feng Huang Wang·2025-09-25 08:41Core Viewpoint - ST Qibu (603557.SH) has been involved in a series of legal issues related to fraudulent activities, including securities fraud and financial misrepresentation, leading to significant penalties and ongoing financial struggles [1][2][3][4][5][6]. Group 1: Legal Issues and Penalties - The company and several former executives have been charged with securities fraud, including the former chairman and other key management personnel [2][4]. - A first-instance judgment has resulted in a fine of 10 million RMB for ST Qibu, with the company having already paid 2.1 million RMB of a previous 52 million RMB penalty imposed by the China Securities Regulatory Commission (CSRC) [3][6]. - The CSRC's investigation revealed that from 2018 to mid-2020, ST Qibu inflated its revenue by 360 million RMB and profits by 129 million RMB through fraudulent practices [5][6]. Group 2: Financial Performance - ST Qibu has reported continuous financial losses over the past five years, with a cumulative net loss of 1.762 billion RMB [9][10]. - In the first half of the current year, the company recorded a revenue of 85.84 million RMB, a year-on-year decrease of 33.53%, and a net loss of 37.14 million RMB, down 20.13% from the previous year [10]. - The decline in revenue is attributed to a slowdown in industry growth and intensified competition in the children's apparel and footwear market, leading to reduced sales from both offline distributors and online channels [10].