IPO欺诈发行，10名高管集体获刑！

Core Viewpoint - Guangdong Zijing Information Storage Technology Co., Ltd. has been forced to delist due to major violations, with significant legal consequences for its executives [1][11]. Legal Consequences - The company was fined 37 million RMB for fraudulently issuing securities [4][14]. - The actual controller Zheng Mu received a combined prison sentence of 7 years and 6 months for multiple offenses, including fraud and failure to disclose important information [4][14]. - Other executives, including Luo Tiewei and Li Yanxia, received varying prison sentences, with the highest being 7 years for Luo Tiewei [5][15]. Company Background - Zijing Storage was established on April 15, 2010, and primarily engaged in the research, manufacturing, and sales of storage devices [6][18]. - The company was listed on the National Equities Exchange and Quotations (NEEQ) in April 2016 and later on the Sci-Tech Innovation Board in February 2020, raising a total of 1.023 billion RMB [7][19]. Financial Misconduct - From 2017 to 2019, the company engaged in financial fraud, including inflating revenue and profits through false contracts and documents [7][19]. - The inflated profits accounted for 34.83% of total profits in 2017 and 32.25% in 2018, with 42.97% of revenue in the first half of 2019 being fraudulent [8][19]. Performance Decline - After going public, the company's performance deteriorated, with a revenue drop of 6.69% in 2021 and a net loss of 229 million RMB, a decline of 379.85% [8][20]. - The company faced regulatory scrutiny and was investigated for information disclosure violations, leading to its delisting in July 2023 [9][20]. Investor Compensation - The case set a precedent for investor compensation in the Sci-Tech Innovation Board, with intermediary institutions committing 1.275 billion RMB for investor payouts [9][21]. - By June 30, 2023, 97.22% of affected investors had reached settlements, receiving a total of 1.086 billion RMB in compensation [9][21].