Group 1 - The core issue revolves around insider trading involving Jiangsu Southern Pharmaceutical Co., Ltd., where the actual controller and former CFO sold shares based on non-public information regarding a negative internal control audit report, resulting in a penalty of 48.7 million yuan from the Jiangsu Securities Regulatory Bureau [2][3] - The case highlights a shift in regulatory focus towards "loss-avoidance insider trading," which is more covert and damaging to investor rights compared to traditional insider trading based on positive news [4] - The incident serves as a warning for all listed companies regarding the importance of internal control systems, as failures can lead to illegal activities and significant reputational damage [5] Group 2 - The case illustrates the necessity for listed companies to enhance their governance capabilities to address internal control failures, as evidenced by the negative audit report due to issues like fund occupation [5] - The audit firm involved maintained its professional integrity by refusing to alter the audit conclusion, showcasing a positive trend where audit institutions are increasingly willing to uphold standards against client pressure [6][7] - Overall, the insider trading penalty reflects three positive changes in the capital market: precise regulatory enforcement, deepening corporate governance awareness, and responsible audit practices, contributing to a more transparent and healthy market environment [7]