Core Viewpoint - The article highlights the recent decision by the Shanghai Stock Exchange to terminate the listing of Hubei Jiuyou Investment Co., Ltd. (*ST Jiuyou) due to continuous financial fraud over four years, emphasizing that companies cannot evade accountability through delisting [1][4][8]. Group 1: Company Overview - *ST Jiuyou primarily engages in comprehensive marketing services and cosmetics sales, having been listed on the Shanghai Stock Exchange since 2003 [2]. - The company was placed under delisting risk warning starting May 6, 2024, due to negative net assets reported at the end of 2023 [2]. Group 2: Financial Misconduct - *ST Jiuyou has been found guilty of significant financial misconduct, including failing to disclose related party transactions and fabricating financial reports from 2021 to 2023 [3][2]. - The 2020 annual report was inflated by CNY 63.97 million (approximately USD 9.1 million), representing 471.03% of the reported profit for that year [3]. Group 3: Regulatory Actions - The company and its responsible parties face severe penalties from the China Securities Regulatory Commission (CSRC), including a fine of CNY 8.5 million (approximately USD 1.2 million) for the company and CNY 15 million (approximately USD 2.1 million) for the former actual controller, who is also banned from the market for ten years [3]. - The CSRC has adopted a "delisting does not exempt from liability" principle, ensuring that companies and responsible individuals are held accountable for their illegal activities even after delisting [8]. Group 4: Broader Industry Context - Another company, Shenzhen Guangdao Digital Technology Co., Ltd., is also facing potential delisting due to serious financial fraud, indicating a trend of increased scrutiny and regulatory action against financial misconduct in the industry [5][6]. - The regulatory environment is tightening, with the CSRC pursuing accountability for 35 delisted companies and their responsible parties, reinforcing the message that financial fraud will not be tolerated [8].

Core Viewpoint - *ST Longyu and *ST Pengbo have received delisting decisions due to non-standard audit opinions on their annual reports and internal controls, indicating financial delisting scenarios [1][3] Group 1: *ST Pengbo - *ST Pengbo has been found guilty of long-term financial fraud, with its stock price dropping below 1 yuan, closing at 0.62 yuan before suspension [2] - The company received an administrative penalty in August 2024, confirming that its financial data contained false records [2] - The 2024 audit report indicated significant uncertainties regarding the company's ability to continue as a going concern, unresolved issues from previous years, and limitations in audit procedures [2][3] Group 2: *ST Longyu - *ST Longyu has received non-standard audit opinions for two consecutive years, with the 2023 report indicating insufficient evidence to assess the nature and recoverability of certain receivables [3] - The 2024 annual report also received a non-standard opinion, highlighting unresolved issues from previous audits, including the recoverability of prepayments and potential impacts from ongoing investigations [3][4] - The company disclosed that its controlling shareholder has occupied 918 million yuan, with an outstanding balance of 868 million yuan yet to be repaid [4] Group 3: Regulatory Environment - The delisting of companies like *ST Longyu and *ST Pengbo is part of a broader regulatory framework that emphasizes accountability, with the principle of "delisting does not exempt from liability" being upheld by the China Securities Regulatory Commission [5] - Regulatory bodies are committed to pursuing legal actions against companies and responsible individuals for violations that occurred during their listing period, including civil compensation for investors affected by false statements [5]

Core Viewpoint - *ST Jin Gang has been found guilty of financial fraud, leading to its imminent delisting from the stock market, reflecting the regulatory body's strict enforcement of zero tolerance towards financial misconduct [1][2][4]. Group 1: Financial Fraud Details - *ST Jin Gang was found to have inflated profits through false trade activities and premature recognition of port service fees from 2022 to 2024, with inflated profits of 36.10 million yuan (22.46% of total reported profit) in 2022, 68.08 million yuan (65.96%) in 2023, and 15.38 million yuan (62.05%) in Q1 2024 [2]. - The company has faced continuous false reporting for four consecutive years from 2020 to 2023, triggering mandatory delisting procedures as per the stock exchange rules [3]. Group 2: Regulatory Actions - The China Securities Regulatory Commission (CSRC) has imposed a maximum penalty of 38.6 million yuan on *ST Jin Gang and 11 responsible individuals, with severe penalties including a 10-year market ban for the former CFO [4]. - The total fines related to the fraudulent activities have exceeded 60 million yuan, indicating a comprehensive approach to accountability [4][5]. Group 3: Implications of Delisting - The delisting of *ST Jin Gang is not the end of accountability, as the regulatory body emphasizes that companies must still face legal consequences for their actions, including civil and criminal liabilities [6][7]. - Investors affected by the financial fraud have the right to pursue legal action to recover losses, reinforcing the commitment to investor protection [7][8].