FOET(SZ:300173) Zhong Guo Jing Ying Bao·2025-12-20 04:00Core Viewpoint - Funiu Dongfang (300173.SZ) disclosed that its subsidiary is suspected of colluding with a third party to commit financial fraud, leading to false records in the company's 2020 and 2021 annual reports, with the Guangdong Securities Regulatory Bureau proposing a fine of 6.5 million yuan [1][2]. Group 1: Financial Fraud Details - The subsidiary, Shenzhen Dayu Precision Technology Co., Ltd. (Dayu Precision), colluded with Chongqing Zhongguangdian Display Technology Co., Ltd. to create false transactions, resulting in inflated profits of 35.7985 million yuan for 2020, which accounted for 120.18% of the reported profit for that year [2]. - In 2021, Dayu Precision recognized impairment losses on the inflated prepayments, leading to a reduction of 22.6509 million yuan in profits, representing 6.64% of the reported profit for that year [2]. - The Guangdong Securities Regulatory Bureau has proposed corrective actions, a warning, and a fine of 6.5 million yuan against Funiu Dongfang [2]. Group 2: Regulatory Actions and Industry Trends - The regulatory body has initiated a comprehensive system to combat financial fraud involving third parties, with a notable case in October 2025 where both the fraudulent company and the complicit third parties were penalized [4][5]. - Research indicates that from 2019 to 2023, 53 listed companies were involved in financial fraud with the assistance of third parties, highlighting a growing trend in the capital market [5]. - The introduction of the "Regulatory Guidelines" in December 2025 aims to establish a full-chain mechanism to combat financial fraud, including accountability for third-party collaborators, thereby increasing the cost of illegal activities [6].