CDT(SZ:300344) Zhong Guo Jing Ying Bao·2025-11-28 13:57Core Viewpoint - The China Securities Regulatory Commission (CSRC) has proposed a fine of 10 million yuan against Lifan Technology (ST Lifan, 300344.SZ) for three consecutive years of financial fraud, with an additional 30 million yuan fine for 10 responsible individuals. The Shenzhen Stock Exchange will initiate delisting procedures due to serious violations [2][4]. Group 1: Financial Fraud Details - Lifan Technology inflated its revenue by a total of 638 million yuan and costs by 628 million yuan from 2021 to 2023, with specific annual inflations of 280 million yuan in revenue and 277 million yuan in costs for 2021, 312 million yuan and 305 million yuan for 2022, and 46 million yuan and 45 million yuan for 2023 [3]. - The company engaged in agency business, financing trade, and false trade to artificially inflate its financial statements [3]. Group 2: Regulatory Actions - The CSRC has decided to formally investigate the auditing firm Zhongxing Caiguanghua for its role in the fraudulent activities, as it issued standard unqualified audit reports for Lifan Technology from 2021 to 2023 [6][7]. - The proposed penalties against Lifan Technology and its executives are significantly higher than previous regulations, reflecting the new accounting law's stricter standards for financial fraud [6]. Group 3: Implications of Delisting - Lifan Technology's case is seen as a typical example of the enforcement of new regulations and a comprehensive accountability system, highlighting a zero-tolerance approach to financial fraud [6][7]. - The initiation of delisting procedures by the Shenzhen Stock Exchange indicates a serious consequence for companies involved in major violations, aiming to reduce the occupancy of market resources by substandard firms [6].