Core Viewpoint - The company Sichuan Medical Technology Co., Ltd. (思创医惠) is under criminal investigation for financial fraud, following previous administrative penalties related to falsified financial statements [1][4][5]. Group 1: Investigation and Legal Actions - The company received a notification from the Hangzhou Public Security Bureau regarding the collection of evidence related to a fraud case involving securities issuance [1][4]. - The investigation focuses on past financial data and is linked to an earlier administrative penalty issued by the Zhejiang Securities Regulatory Commission [3][5]. - The Zhejiang Securities Regulatory Commission found that the company inflated its revenue by CNY 34.93 million and profits by CNY 33.02 million in 2019, which constituted 20.03% of the total profit for that period [6][7]. Group 2: Financial Performance and Adjustments - In 2024, the company reported a revenue of CNY 690.77 million, a decrease of 31.33% compared to 2023, and a net loss of CNY 501.51 million, which is a 42.64% reduction in losses year-on-year [11][12]. - The company has undergone significant restructuring, including the resignation of its former chairman and the sale of its subsidiary, which was the main platform for the financial fraud [9][10]. - The company is shifting its focus from smart medical services to the Internet of Things (IoT) business, aiming to enhance its growth engine [10]. Group 3: Investor Relations and Future Plans - The company is actively communicating with investors regarding potential compensation plans and is coordinating with courts on specific details related to investor lawsuits [8]. - A strategic cooperation framework has been established with the Cangnan County government to support various aspects of business development [9].

Core Viewpoint - The article discusses the ongoing investigation into Sichuang Medical (思创医惠) for alleged fraudulent activities related to securities issuance and financial misreporting, highlighting the company's past violations and current challenges in the market [3][4][6]. Summary by Sections Investigation and Allegations - On August 14, Sichuang Medical received a notice from the Hangzhou Public Security Bureau regarding the collection of evidence for a case involving alleged fraudulent securities issuance [3]. - The case is currently in the investigation stage, with no clear conclusions yet, and the company has committed to cooperating with the investigation and fulfilling its disclosure obligations [4]. Previous Violations - Sichuang Medical was previously investigated by the China Securities Regulatory Commission (CSRC) for information disclosure violations, leading to an administrative penalty issued by the Zhejiang Securities Regulatory Bureau on January 8, 2024 [6]. - The investigation revealed that the company had fabricated significant false information in its public bond issuance documents, resulting in inflated revenue and profits. Specifically, from 2017 to 2019, the company inflated its revenue by 34.93 million and profits by 33.02 million, which constituted 20.03% of the total profit for that period [6]. - For the period of January to September 2020, the company inflated its revenue by 60.96 million and profits by 52.37 million, accounting for 56.81% of the total profit for that period [6]. Financial Impact and Penalties - The Zhejiang Securities Regulatory Bureau imposed a fine of 85.7 million on Sichuang Medical and issued warnings to the company's former chairman and general manager, who also faced a fine of 7.5 million and a 10-year market ban [7]. - The company has experienced significant revenue declines and continuous losses due to intense industry competition and business adjustments, with no signs of improvement [7]. - As of August 2025, Sichuang Medical completed the divestiture of its 100% stake in its subsidiary, Medical Technology [7].

Group 1 - The core issue involves a fraud investigation against the company by the Hangzhou Public Security Bureau regarding the alleged fraudulent issuance of securities [1] - The company has previously been under investigation by the China Securities Regulatory Commission (CSRC) for information disclosure violations, leading to administrative penalties [3] - The company was found to have fabricated significant false information in its public bond issuance documents, resulting in inflated revenue and profits for the years 2019 and 2020 [3][4] Group 2 - The company was penalized with a fine of 85.7 million yuan and its former chairman and general manager received individual fines and a 10-year market ban [5] - The company has faced significant revenue declines and continuous losses due to intense industry competition and business adjustments [5] - The company completed the divestiture of its 100% stake in its subsidiary, Medical Technology Co., Ltd., in August 2025 [5]

Core Viewpoint - The company *ST Gao Hong is under investigation by the China Securities Regulatory Commission for fraudulent issuance of shares and false records in annual reports from 2015 to 2023, which may lead to mandatory delisting due to serious violations of regulations [1] Group 1 - The company's stock price has dropped over 12% cumulatively over three consecutive trading days (August 11, 12, and 13, 2025) [1] - The company has been placed under a delisting risk warning by the Shenzhen Stock Exchange starting from August 11, 2025 [1] - The investigation is based on the determination that the company's non-public offering of shares in 2020 constitutes fraudulent issuance [1] Group 2 - The annual reports from 2015 to 2023 have been found to contain false records, which may trigger significant legal consequences [1] - The company is at risk of being subjected to mandatory delisting as per the Shenzhen Stock Exchange's regulations [1] - The situation reflects serious compliance issues within the company that could impact investor confidence and market perception [1]

Core Viewpoint - *ST Gaohong is facing severe penalties from the China Securities Regulatory Commission (CSRC) due to fraudulent activities, including inflated revenue and profits from 2015 to 2023, which may lead to forced delisting from the Shenzhen Stock Exchange [1][20]. Group 1: Fraudulent Activities - The company engaged in fraudulent issuance of shares and inflated financial reports, with significant discrepancies in reported revenue and profits from 2015 to 2023 [1][2][20]. - Specific inflated figures include a total of 6.94 billion yuan in revenue for 2015, peaking at 56.34 billion yuan in 2020, and a total profit inflation of 2.19 billion yuan in 2020 [2][8]. Group 2: Regulatory Actions - The CSRC has proposed a total fine of 1.6 billion yuan against the company and involved parties, with individual penalties for key executives ranging from 100,000 to 750,000 yuan [4][17]. - The company is also facing a potential 10-year market ban for its chairman and the actual controller of a related trading company, while the financial director may face a 5-year ban [5][18]. Group 3: Impact on Company Operations - The fraudulent activities have led to a significant risk of delisting from the Shenzhen Stock Exchange, as the company’s actions violate multiple regulations [1][20]. - The company’s non-public stock issuance in 2020, which raised 1.25 billion yuan, is also under scrutiny for containing false information [9][15].

Core Viewpoint - *ST Gaohong faces significant risks of forced delisting due to nearly 20 billion yuan in financial fraud and fraudulent issuance, as indicated by the China Securities Regulatory Commission's (CSRC) administrative penalty notice [1][4][5] Group 1: Financial Fraud Details - From 2015 to 2023, *ST Gaohong inflated its revenue by a total of 198.76 billion yuan through various fraudulent activities, including fictitious trade operations [3][12] - The inflated profits over the same period amounted to 76.23 million yuan, with the highest annual inflation occurring in 2019, where approximately 50% of the revenue was fabricated [3][13] - The fraudulent activities were primarily facilitated by the company's major stakeholders, including Jiang Qing and his spouse, who controlled key suppliers and customers [12][13] Group 2: Role of Guoxin Securities - Guoxin Securities, as the sponsor and independent financial advisor for *ST Gaohong's 2020 private placement, failed to detect the extensive financial fraud over seven years, during which the fraud amount reached 187.47 billion yuan, accounting for 94.32% of the total fraud [2][6] - Despite having a legal obligation to conduct thorough due diligence, Guoxin Securities did not identify any anomalies in *ST Gaohong's financial reports or related documents [5][11] - The lack of oversight by Guoxin Securities during the critical years of 2015-2021 raises questions about their diligence and responsibility in safeguarding investor interests [11][12] Group 3: Regulatory Actions and Consequences - The CSRC plans to impose penalties exceeding 160 million yuan on *ST Gaohong and related parties, including a fine of 135 million yuan for the company [4][5] - The potential for criminal charges against key individuals involved in the fraud is also being considered by the CSRC [4][5] - Guoxin Securities has not yet faced any formal investigation or penalties, but the ongoing scrutiny may lead to future accountability [5][12]

Core Viewpoint - The regulatory authorities have imposed severe penalties on *ST Gaohong Network Co., Ltd. for engaging in financial fraud over nine years, inflating revenues by nearly 20 billion yuan [1][4]. Group 1: Financial Fraud Details - From 2015 to 2023, *ST Gaohong inflated its revenue by approximately 19.8 billion yuan and profits by over 76.2 million yuan through fictitious trade activities [2][3]. - The fraudulent activities involved a closed-loop system with no actual goods flow, organized by the actual controller of a trading company [2]. - The company used inflated financial statements to raise funds, constituting fraudulent issuance of shares [3]. Group 2: Regulatory Actions - The China Securities Regulatory Commission (CSRC) plans to impose a fine of 135 million yuan on *ST Gaohong and an additional 26.75 million yuan on nine involved executives [4]. - The chairman and former general manager, Fu Jinglin, faces a dual penalty of 7.5 million yuan and a 10-year market ban [4]. - The CSRC has indicated that *ST Gaohong may face mandatory delisting due to serious violations, including fraudulent issuance of shares and false financial reporting [4][5]. Group 3: Industry Implications - The crackdown on *ST Gaohong reflects a zero-tolerance policy towards securities violations, aiming to maintain market order and protect investor rights [1][7]. - The regulatory environment has intensified, with an increase in criminal accountability for financial fraud among listed companies [7].

Core Viewpoint - The article discusses the legal actions taken against Gel Software and other parties involved in the fraudulent issuance and information disclosure violations related to Zeda Yisheng Technology Co., Ltd, highlighting the financial implications and the ongoing litigation process [2][4]. Group 1: Legal Proceedings - On August 12, Gel Software announced that it, along with 38 other defendants, is being sued for a total of approximately 37,227.26 million yuan across three cases related to fraudulent issuance and information disclosure violations [2]. - The three cases involve claims of 12,345.51 million yuan, 21,533.20 million yuan, and 3,348.55 million yuan respectively, with the total amount claimed being 37,227.26 million yuan [2]. - The plaintiffs include Dongxing Securities, Tianjian Accounting Firm, and Beijing Kangda Law Firm, all of which were intermediaries in Zeda Yisheng's initial public offering [4]. Group 2: Background and Financial Impact - In April 2023, Zeda Yisheng was penalized by the China Securities Regulatory Commission for fraudulent issuance and information disclosure violations, leading to investor lawsuits against Zeda Yisheng and its intermediaries [4]. - Following the penalties, Dongxing Securities, Tianjian Accounting, and Kangda Law Firm collectively paid approximately 493 million yuan to investors and the regulatory authority, prompting them to seek recovery of these costs through litigation against other involved parties [4]. - Gel Software's involvement stems from business transactions with Zeda Yisheng in 2018 and 2020, which were later found to lack commercial substance during a self-examination process [4].

Core Viewpoint - The regulatory authority has imposed severe penalties on *ST Gaohong (000851) for engaging in financial fraud over nine years, inflating revenues by nearly 20 billion yuan, reflecting a zero-tolerance stance towards securities violations [1][4]. Group 1: Financial Fraud Details - From 2015 to 2023, *ST Gaohong inflated its revenue by approximately 19.8 billion yuan and profits by over 76.2 million yuan through fictitious trade activities [2][3]. - The fraudulent activities involved a closed-loop system where suppliers and customers were orchestrated by Jiang Qing, with no actual goods being exchanged [2]. - The company also misused inflated financial statements to raise funds, constituting fraudulent issuance during its non-public stock offering in 2020, which raised 1.25 billion yuan [3]. Group 2: Regulatory Actions - The China Securities Regulatory Commission (CSRC) plans to impose a fine of 135 million yuan on *ST Gaohong and an additional 26.75 million yuan on nine involved executives, including a 7.5 million yuan fine and a 10-year market ban for the chairman [4]. - Jiang Qing, the actual controller of Nanjing Qingya, will also face a 7 million yuan fine and a 10-year market ban for his role in the fraudulent activities [4]. - The company has issued a risk warning regarding the potential for mandatory delisting due to serious violations, including fraudulent issuance and false reporting in annual reports [4][5]. Group 3: Industry Implications - The crackdown on financial fraud is part of a broader regulatory effort to maintain market integrity and protect investors, with an increasing number of companies and individuals facing criminal charges for similar offenses [6][7]. - The regulatory environment has become more stringent, with a focus on creating a comprehensive deterrent system against financial misconduct, enhancing the overall standard of the capital market [7].

Group 1 - Company *ST Gao Hong (000851.SZ) has been placed under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws, leading to a trading halt with shares dropping to 2.1 yuan and over 4 million shares on hold [1] - The CSRC's notice indicates that the company engaged in fraudulent issuance of shares during its non-public offering in 2020, and its annual reports from 2015 to 2023 contain false records, potentially leading to mandatory delisting [1] - Investigations revealed that *ST Gao Hong inflated its revenue and profits through fictitious trade activities, resulting in a total inflated revenue of 19.876 billion yuan and inflated profit of 76.2259 million yuan from 2015 to 2023 [1] Group 2 - The CSRC plans to impose a fine of 160 million yuan on the responsible parties and an additional 7 million yuan on third parties involved in the fraudulent activities [1]