Core Viewpoint - Guangdong Zijing Information Storage Technology Co., Ltd. has been forced to delist due to major violations, including fraudulent issuance of securities and significant financial misconduct, resulting in severe penalties for the company and its executives [1][6][14]. Group 1: Legal Proceedings and Penalties - The company was found guilty of fraudulent issuance of securities, leading to a fine of RMB 37 million [7]. - The actual controllers and key executives, including Zheng Mu and Luo Tiewei, received prison sentences, with Zheng Mu facing a total of seven and a half years [7][8]. - A total of ten core management personnel were sentenced, with prison terms ranging from one year and nine months to seven years and six months [8][9]. Group 2: Financial Misconduct Details - From 2017 to 2019, the company inflated its revenue by over RMB 430 million and profits by over RMB 210 million through fraudulent contracts and falsified documents [14]. - The inflated profits represented 34.83% of total profits in 2017 and 32.25% in 2018, with 42.97% of revenue and 137.31% of profits inflated in the first half of 2019 [3][4]. - The company failed to disclose significant external guarantees, with amounts not disclosed totaling RMB 125 million [5]. Group 3: Impact on Investors - Approximately 17,471 investors suffered losses totaling RMB 1.097 billion due to the company's fraudulent activities [6]. - A compensation fund was established, with around 97.22% of eligible investors reaching settlements, amounting to RMB 1.086 billion in compensation [19][21]. - The company is now trading at a significantly reduced market value of RMB 41.88 million [16]. Group 4: Company Background and Market Position - Founded in April 2010, the company specialized in optical storage technology and was once celebrated as the "first stock of optical storage" upon its listing on the Sci-Tech Innovation Board in February 2020 [13][14]. - The company's stock price surged by 264.08% on its debut, reaching a market capitalization of RMB 14.895 billion [13]. - However, post-listing performance declined sharply, with revenues dropping from RMB 5.63 billion in 2020 to RMB 4.58 billion in 2021, and a net loss of RMB 229 million reported in 2021 [14].

Core Points - Guangdong Zijing Information Storage Technology Co., Ltd. has been forced to delist due to major violations, including fraud in issuing securities and failure to disclose important information [1][6][14] - The company was fined 37 million RMB, and its actual controllers and key management personnel received prison sentences, with the longest being seven years and six months [1][7][8] Summary by Sections Fraudulent Issuance of Securities - The company was found guilty of fraudulently issuing securities, with a total of 413.4 million RMB raised through three rounds of capital increases from September 2016 to July 2018 [3] - The fraudulent activities included signing false sales contracts and fabricating logistics documents to inflate revenue and profits, with inflated profits accounting for 34.83% in 2017 and 32.25% in 2018 [3][14] - The company went public on the Sci-Tech Innovation Board in February 2020, raising approximately 1.022 billion RMB, but had significant undisclosed liabilities [3][14] Violations of Information Disclosure - After going public, the company continued to misrepresent its financial performance, with the 2019 annual report showing inflated revenue and profits by 52.46% and 94.55%, respectively [4] - The 2020 annual report had inflated figures of 63.15% for revenue and 174.67% for profit [4] - The company failed to disclose significant external guarantees, with amounts not disclosed totaling 125 million RMB from 2019 to 2021, which represented a substantial percentage of the audited net assets [5][14] Legal Consequences - The court sentenced the company's actual controller, Zheng Mu, to a total of seven years and six months in prison, along with a fine of 500,000 RMB [7] - Other key executives received varying sentences, with the original financial director, Li Yanxia, sentenced to six years and six months [8] - The company has been identified as the first to be delisted from the Sci-Tech Innovation Board due to fraudulent activities [14][15] Investor Compensation - Approximately 17,471 investors suffered losses totaling 1.097 billion RMB due to the company's fraudulent activities [6][18] - A compensation fund has been established, with around 10.86 billion RMB already paid to eligible investors [18][19] - Four intermediary institutions involved in the case have agreed to pay a total of approximately 1.275 billion RMB in compensation and have undergone corrective measures [19][20]

Core Points - Guangdong Zijing Information Storage Technology Co., Ltd. has been forced to delist due to major violations, including fraud in issuing securities and failure to disclose important information [1][6][14] - The company has been fined 37 million RMB, and its actual controllers and key management personnel have received prison sentences, with the longest being seven years and six months [1][7][8] Summary by Sections Fraudulent Issuance of Securities - The company was found guilty of fraudulently issuing securities, with a total of 413.4 million RMB raised through three rounds of capital increases from September 2016 to July 2018 [3] - The fraudulent activities included signing false sales contracts and fabricating logistics documents to inflate revenue and profits, with inflated profits accounting for 34.83% in 2017 and 32.25% in 2018 [3][14] Violations of Information Disclosure - After going public, the company continued to inflate revenue and profits, with the 2019 annual report showing inflated revenue and profit by 52.46% and 94.55%, respectively [4] - The company failed to disclose significant external guarantees, with undisclosed amounts reaching 145 million RMB in 2019, 185 million RMB in 2020, and 417.9 million RMB in 2021, which were substantial relative to the company's net assets [5] Legal Consequences - The court sentenced the company to a fine of 37 million RMB and imposed prison sentences on key executives, including the legal representative and actual controller, Zheng Mu, who received a total sentence of seven years and six months [7][8] - Other executives received varying sentences, with some receiving prison terms of up to four years and six months for their roles in the fraudulent activities [8][9][10][11][12] Investor Impact - Approximately 17,471 investors suffered losses totaling 1.097 billion RMB due to the company's fraudulent activities, leading to a compensation fund being established [6][19] - By June 30, 2023, around 97.22% of eligible investors had reached settlements, with compensation payments amounting to 1.086 billion RMB [19] Company Background - Founded in April 2010, the company specialized in optical storage technology and was listed on the Sci-Tech Innovation Board in February 2020, initially valued at 14.895 billion RMB [13][14] - The company faced declining performance post-IPO, with significant losses reported in 2021 and a non-standard audit report issued for that year [14]

Core Points - Guangdong Zijing Information Storage Technology Co., Ltd. has been forced to delist due to major violations, including fraud in securities issuance and significant penalties for its management [1][5][12] - The company was found guilty of fraudulent activities that inflated its financial performance, leading to severe legal consequences for its executives [6][8][9] Company Overview - Zijing Storage is a high-tech enterprise specializing in optical storage, providing various storage media and solutions since its establishment in April 2010 with a registered capital of 3 million RMB [4] - The company was once considered a representative of domestic alternatives in optical storage technology and achieved a market capitalization exceeding 10 billion RMB shortly after its listing on the STAR Market in February 2020 [5] Financial Performance - In 2020, Zijing Storage reported revenue of 563 million RMB, a year-on-year increase of 8.97%, but its net profit decreased by 24.71% to 104 million RMB [5] - The company's revenue declined to 458 million RMB in 2021, a decrease of 6.69%, resulting in a net loss of 229 million RMB, marking a significant drop of 379.85% [5] Legal Proceedings - The company was charged with fraudulently issuing securities, leading to a fine of 37 million RMB and prison sentences for its key executives, with the maximum term being seven years and six months [1][12] - The fraudulent activities included signing false sales contracts and inflating revenue and profits, which misled investors and regulatory bodies [8][9] Impact on Investors - The delisting and legal issues have resulted in significant financial losses for investors, totaling approximately 1.097 billion RMB across 17,471 affected investors [11]

Core Viewpoint - Guangdong Zijing Information Storage Technology Co., Ltd. has been sentenced for securities fraud, with its actual controllers and key management receiving prison sentences and the company itself facing significant fines [1][4]. Legal Proceedings - The company was found guilty of fraudulently issuing securities and was fined 37 million RMB [4]. - Zheng Mu, the actual controller, received a total prison sentence of 7 years and 6 months, along with a fine of 500,000 RMB [4][5]. - Luo Tiewei was sentenced to 7 years in prison and fined 400,000 RMB [4][5]. - Li Yansha received a sentence of 6 years and 6 months, with a fine of 350,000 RMB [5][6]. - Other key management members, including Jiao Shizhi, Huang Meishan, and others, received varying sentences and fines for similar charges [7][8][9]. Company Background - Zijing Storage, established in April 2010, focuses on optical storage technology and has received significant investment from notable firms [11][12]. - The company went public on the Sci-Tech Innovation Board in February 2020, initially achieving a market capitalization of 14.895 billion RMB [13]. - However, post-IPO performance has been declining, with revenues dropping from 5.63 billion RMB in 2020 to 4.58 billion RMB in 2021, and a net loss of 2.29 billion RMB reported in 2021 [13][14]. Regulatory Actions - The company has been under investigation for information disclosure violations since February 2022, leading to a significant regulatory crackdown [13][14]. - Zijing Storage is the first company to face allegations of fraudulent IPO under the new registration system, resulting in its impending delisting due to severe violations [14].

Core Viewpoint - The article reviews the achievements and milestones of the Sci-Tech Innovation Board (STAR Market) since its establishment, highlighting fifteen significant "firsts" as of June 13, 2025, including the number of listed companies, market capitalization, and the dominance of strategic emerging industries such as new-generation information technology, biomedicine, and high-end equipment manufacturing, which account for over 80% of the total [1]. Group 1: First Companies and Milestones - The first company to transfer from the Beijing Stock Exchange to the STAR Market is Guandian Defense Technology Co., Ltd., which listed on May 25, 2022, after experiencing a significant decline in revenue and net profit in 2024 [2]. - The first loss-making company to list on the STAR Market is Suzhou Zejing Biopharmaceutical Co., Ltd., which went public on January 23, 2020, and reported continuous losses since its inception, with a net profit of -1.38 billion in 2024 [3][4]. - The first STAR Market company to be acquired by another listed company is Jiangsu Haooubo Biopharmaceutical Co., Ltd., which was announced in October 2024, with a total acquisition price of 630 million [5][6]. Group 2: Notable Events and Achievements - The first company to be delisted from the STAR Market is Guangdong Zijing Information Storage Technology Co., Ltd., which faced severe penalties for financial fraud and was officially delisted on May 31, 2023 [7][8][9]. - The first company to adopt a dual-class share structure on the STAR Market is UCloud Technology Co., Ltd., which listed on January 20, 2020, allowing its founders to maintain significant control over the company [10][11]. - The first major asset restructuring project approved for a STAR Market company is Suzhou Huaxing Yuan Chuang Technology Co., Ltd., which received approval for its acquisition of Suzhou Oulitong Automation Technology Co., Ltd. on June 12, 2020 [12][13]. Group 3: Financial Performance and Rankings - The highest market capitalization on the STAR Market is held by Semiconductor Manufacturing International Corporation (SMIC), with a total market value of 661.2 billion as of June 13, 2025 [21]. - The company with the highest revenue in 2024 is JinkoSolar Holding Co., Ltd., achieving 92.471 billion in revenue, despite a 22.08% decline year-on-year [22]. - The highest net profit excluding non-recurring items in 2024 is reported by Transsion Holdings Co., Ltd., with a net profit of 4.541 billion, down 11.54% from the previous year [23][24]. Group 4: Employment and Regional Distribution - The company with the largest number of employees as of the end of 2024 is JinkoSolar Holding Co., Ltd., with 33,809 employees, reflecting a significant reduction of 41.07% from the previous year [25]. - The province with the most STAR Market listed companies is Jiangsu, which has 113 companies, accounting for 19.22% of the total, primarily concentrated in cities like Suzhou, Nanjing, and Wuxi [26].