Core Viewpoint - The case of *ST Zitian highlights the severe consequences of financial fraud, leading to significant penalties and the loss of market credibility [1][2][3] Group 1: Financial Fraud and Consequences - *ST Zitian was fined a total of 38.4 million yuan by the Fujian Securities Regulatory Bureau for systemic financial fraud involving nearly 2.5 billion yuan in revenue [1] - The company's market value has plummeted to just over 400 million yuan, representing a loss of over 90% from its peak [2] Group 2: Governance Issues - The family-based governance structure of *ST Zitian led to a lack of accountability, with executives deflecting blame onto each other during the crisis [2] - This situation underscores the importance of establishing a modern governance framework that includes independent directors and professional oversight, rather than relying solely on familial trust [2] Group 3: Regulatory Compliance - The company's refusal to cooperate with regulatory investigations, including ignoring communications from regulators, exemplifies a blatant disregard for market rules [3] - The regulatory response indicates a zero-tolerance policy towards financial fraud and non-compliance, emphasizing that companies cannot evade consequences through concealment or delay [3]