DFSS(SH:603377) 新华网财经·2025-07-12 04:08Core Viewpoint - ST Dongshi (Oriental Fashion, 603377) is facing significant legal and operational challenges due to the conviction of its actual controller, Xu Xiong, for manipulating the securities market, which has led to a prison sentence and substantial fines [1][3]. Group 1: Legal Issues - Xu Xiong has been sentenced to six years and six months in prison and fined 170 million yuan for manipulating the securities market [1]. - The company has faced multiple investigations and penalties, including a fine of 5 million yuan for failing to disclose related party transactions and an additional 8.5 million yuan in penalties for Xu Xiong [4]. - The company received a notice from the China Securities Regulatory Commission regarding suspected violations of information disclosure laws [4]. Group 2: Corporate Governance - Following the legal issues, Xu Xiong has been removed from all positions within the company, and the company claims that his actions will not affect shareholder rights or normal business operations [3]. - The company is currently under pre-restructuring as mandated by the Beijing First Intermediate People's Court, with a temporary management team appointed to oversee the process [6]. Group 3: Financial and Operational Status - The company is actively seeking restructuring investors to address debt risks and non-operational fund occupation issues, aiming to maximize the interests of creditors and minority shareholders [7]. - As of December 31, 2024, the company has approximately 387 million yuan in non-operational fund occupation, which has not been resolved, leading to potential delisting risks if not addressed by June 19, 2025 [8].