Core Viewpoint - *ST Zitian has faced severe penalties from the Fujian Securities Regulatory Bureau for financial misconduct, including false disclosures and failure to submit annual reports on time, reflecting a strong regulatory stance against financial fraud in the capital market [1][2][3][4][5]. Group 1: Penalties and Violations - The Fujian Securities Regulatory Bureau imposed a fine of 8.5 million yuan on *ST Zitian for information disclosure violations, along with individual fines of 4 million yuan for the former chairman and 3 million yuan for the CFO [1][3]. - The company’s 2022 annual report was found to have inflated revenue by 779 million yuan, accounting for 44.59% of reported income, due to improper revenue recognition methods [2][3]. - The 2023 semi-annual report also showed inflated revenue of 208 million yuan, representing 14.56% of total income, due to premature revenue recognition in cloud services [2][3]. Group 2: Reporting Failures - *ST Zitian failed to disclose its 2024 annual report within the legal timeframe, only collecting financial reports from 3 out of 33 subsidiaries, leading to a fine of 3.5 million yuan [4][5]. - As of now, the company has not disclosed the 2024 annual report, which is a violation of regulatory requirements [5]. Group 3: Regulatory Actions and Market Impact - The Fujian Securities Regulatory Bureau has taken a firm stance against *ST Zitian, indicating a commitment to protecting investor rights and maintaining market integrity [1][9]. - The company has faced multiple investigations and penalties, including actions against its auditing firm for obstructing regulatory enforcement [9]. - There are ongoing civil lawsuits from investors seeking compensation, highlighting the broader implications of the company's financial misconduct [11]. Group 4: Criminal Investigations - The company is under criminal investigation for "concealing accounting vouchers," which may lead to further legal repercussions [10]. - The actions of *ST Zitian have reached the threshold for criminal prosecution under recent legal standards, indicating potential for serious legal consequences [10]. Group 5: Stock Market Consequences - The Shenzhen Stock Exchange has issued a notice indicating plans to terminate *ST Zitian's stock listing due to failure to disclose corrected financial reports within the required timeframe [11].