Core Viewpoint - The payment institution, Deshi Co., Ltd., has been subject to legal enforcement for nearly 88.73 million yuan due to violations of regulatory requirements, coinciding with a previous fine of the same amount imposed by the central bank for similar infractions [1][4][27]. Group 1: Legal and Regulatory Issues - Deshi Co., Ltd. was recently enforced by the Shanghai Financial Court with an execution amount of 88,731,192 yuan [2][3]. - The execution amount matches a fine imposed by the Shanghai branch of the People's Bank of China in December 2023 for violations of merchant management and clearing regulations [4][27]. - The company has been involved in legal disputes, including a lawsuit against the central bank regarding the revocation of its payment license, which is currently under review by the Beijing Financial Court [12][27]. Group 2: Historical Context and Financial Performance - Deshi Co., Ltd. was one of the earliest companies to obtain a third-party payment business license in Shanghai, established in October 2006 [17]. - The company faced significant financial decline after being acquired by WanHui Chemical (now Lianyang Intelligent Holdings), with reported revenues from third-party payment services dropping by approximately 90.8% in 2021 compared to 2020 [24][27]. - By 2024, the company's payment service revenue further decreased to about 1.159 million Hong Kong dollars, a year-on-year decline of approximately 45.8% [27]. Group 3: Involvement in Illegal Activities - Deshi Co., Ltd. was implicated in facilitating a large online gambling operation, which resulted in over 1 billion yuan in gambling transactions through its payment channels [8][9]. - The company received substantial fees for providing payment services to the gambling platform, amounting to 18.74 million yuan [8][9]. - Legal actions against individuals associated with the gambling operation have led to criminal convictions, further complicating the company's legal standing [9]. Group 4: Industry Implications - The revocation of Deshi Co., Ltd.'s payment license reflects the tightening regulatory environment in the payment industry, with increased scrutiny leading to the exit of non-compliant institutions [27]. - The case highlights the challenges faced by payment institutions in maintaining compliance amid evolving regulations and the consequences of engaging in illegal activities [27].