Core Viewpoint - *ST Gao Hong's stock price has fallen below 1 yuan, raising the risk of delisting due to continuous trading below the par value [2][4]. Group 1: Stock Performance and Delisting Risk - On September 1, *ST Gao Hong's stock closed at 0.98 yuan, with a total market capitalization of 1.1 billion yuan, marking the first time the stock price fell below 1 yuan [2]. - The stock has experienced a continuous decline, hitting the daily limit down for 16 consecutive trading days, resulting in a cumulative drop of over 55% [4]. - According to the Shenzhen Stock Exchange rules, if a company's stock price remains below 1 yuan for 20 consecutive trading days, it may face delisting without entering a delisting preparation period [2]. Group 2: Regulatory Issues and Financial Irregularities - The company received an administrative penalty notice from the China Securities Regulatory Commission (CSRC) on August 8, indicating that its 2020 non-public stock issuance constituted fraudulent issuance, and its annual reports from 2015 to 2023 contained false records [4][6]. - The notice revealed that the company inflated its operating income and costs significantly over the years, with inflated revenues reaching up to 56.34 million yuan in 2020, accounting for 49.38% of the reported revenue for that year [5]. - The CSRC plans to impose a fine of 160 million yuan on responsible parties and 7 million yuan on third parties involved in the fraud [7]. Group 3: Audit Opinions and Financial Health - The company's financial reports for 2021 to 2023 received adverse audit opinions, indicating uncertainty about its ability to continue as a going concern [8]. - As of August 2024, the company's main bank accounts have been frozen, further complicating its financial situation [8]. - The company has not yet received a formal penalty decision regarding the ongoing investigation, but it is actively cooperating with the CSRC [7].

Core Viewpoint - The company *ST Gao Hong is under investigation by the China Securities Regulatory Commission for fraudulent issuance of shares and false records in annual reports from 2015 to 2023, which may lead to mandatory delisting due to serious violations of regulations [1] Group 1 - The company's stock price has dropped over 12% cumulatively over three consecutive trading days (August 11, 12, and 13, 2025) [1] - The company has been placed under a delisting risk warning by the Shenzhen Stock Exchange starting from August 11, 2025 [1] - The investigation is based on the determination that the company's non-public offering of shares in 2020 constitutes fraudulent issuance [1] Group 2 - The annual reports from 2015 to 2023 have been found to contain false records, which may trigger significant legal consequences [1] - The company is at risk of being subjected to mandatory delisting as per the Shenzhen Stock Exchange's regulations [1] - The situation reflects serious compliance issues within the company that could impact investor confidence and market perception [1]