Core Viewpoint - The case of Tianjin Zhuolang Information Technology Co., Ltd. (delisted Zhuolang) highlights the capital market's zero tolerance for financial fraud, with a recent court ruling confirming the company's long-standing fraudulent activities and resulting in compensation to affected investors [1][3]. Summary by Sections Legal Proceedings - Tianjin First Intermediate People's Court announced the completion of the ruling and compensation execution for the securities fraud case involving delisted Zhuolang, with compensation paid to investors within seven months of the case being filed [1][3]. Fraudulent Activities - From 2019 to 2023, Zhuolang's subsidiary, Tianjin Zhuolang Technology Development Co., Ltd., engaged in systematic financial fraud by fabricating core business operations, leading to inflated revenues and profits [3][4]. - The fraudulent activities were primarily focused on two business segments: server and software/system integration services, involving fictitious procurement and sales to related companies without actual product flow [3][4]. Financial Impact - The scale of financial distortion was significant, with reported inflated revenues of 249 million, 489 million, 339 million, 656 million, and 82 million yuan over the years, representing up to 72.46% of disclosed revenues [4]. - The inflated profit totals for the same period were 249 million, 310 million, 339 million, 357 million, and 82 million yuan, with a maximum of 86.08% of disclosed profit totals [4]. Regulatory Actions - The China Securities Regulatory Commission (CSRC) previously imposed administrative penalties on Zhuolang, including a fine of 10 million yuan, and the company was officially delisted on March 6, 2025, due to severe violations [4]. - The case utilized a demonstration litigation mechanism, providing a reference for similar cases and reinforcing the message that delisting does not equate to exemption from liability [4][5].