Core Viewpoint - The announcement highlights the risk of *ST Dongfang potentially facing mandatory delisting due to significant violations of laws and regulations, following abnormal stock trading fluctuations and an ongoing investigation by the China Securities Regulatory Commission (CSRC) [1][5][7]. Summary by Relevant Sections Abnormal Stock Trading - The company's stock experienced a cumulative decline of over 12% in closing prices over three consecutive trading days on March 21, 24, and 25, 2025, which qualifies as abnormal trading behavior according to the Shanghai Stock Exchange rules [4][5]. Risk of Mandatory Delisting - The company received a notice from the CSRC on June 21, 2024, indicating that it is under investigation for suspected violations related to information disclosure. This could lead to mandatory delisting if the investigation concludes that the company has committed significant violations [4][6][7]. - The CSRC's preliminary findings suggest that the company artificially inflated its business operations through fictitious transactions, leading to inflated revenue figures in its annual reports from 2020 to 2023, with discrepancies of 3.90 billion, 4.87 billion, 6.54 billion, and 824 million yuan respectively [6][9]. Financial Reporting Issues - The annual reports for 2020 to 2023 contained false records, with inflated revenues constituting 25.20%, 32.05%, 50.44%, and 13.56% of the reported figures for each respective year. The inflated costs were also significant, representing 23.74%, 29.57%, 45.43%, and 11.45% of the reported costs [6][7]. Company Response and Compliance - The company is committed to cooperating with the CSRC and will exercise its rights to defend against the allegations. It will also disclose any further developments as required [5][9]. - As of March 25, 2025, the company's stock price has been below 1 yuan for seven consecutive trading days, which could lead to termination of listing if it remains below this threshold for 20 consecutive days [5][11]. Operational Status - The company has confirmed that, aside from the disclosed issues, there have been no other significant changes in its operational status or external environment [7].

星标 ★ IPO日报 精彩文章第一时间推送 3月18日，由于2020年至2023年年度报告存在虚假记载，上交所上市公司 东方集团有限公司（下称" 东方集团"）依规被实施退市 风险警示，股票简称变更为*ST东方（600811），日涨跌幅限制为5%。 另一方面，公司股价在经历连续数日跌停后已触及1元退市红线。 3月18日，公司开盘即跌停并一直封死跌停板，收盘价为0.87元，已经 连续两个交易日低于1元"生死线"。 根据《股票上市规则》，如连续20个交易日的每日股票收盘价均低于1元，公司股票可能被交易所 终止上市交易。 这意味着，东方集团将面临重大违法退市及面值退市的双重退市危机。 制图：佘诗婕 这也意味着，东方集团在4年时间内虚增营业收入高达161.3亿元，虚增营业成本160.73亿元。 基于违法事实，证监会对东方集团相关责任人也作出了行政处罚。 其中，对东方集团股份有限公司责令改正，给予警告，并处以1000万元罚款；对张宏伟（实控人）处以1000万元罚款；对孙明涛（时任 总裁）给予警告，并处以500万元罚款；对党荣毅（时任财务总监）给予警告，并处以350万元罚款；对康文杰（时任董秘）给予警告， 并处以300万元 ...

Core Viewpoint - Oriental Group is facing significant financial distress, with its stock price falling below 1 yuan, risking delisting due to serious financial misconduct and ongoing investigations by regulatory authorities [1][2][4]. Financial Performance - The company reported continuous losses over three years, with revenues of 137.29 billion yuan in 2021, 112.65 billion yuan in 2022, and 60.81 billion yuan in 2023. The net profits were -17.19 billion yuan, -9.96 billion yuan, and -15.57 billion yuan respectively, totaling over 42 billion yuan in losses [5]. Regulatory Issues - Oriental Group has been under investigation for significant financial fraud, with the China Securities Regulatory Commission (CSRC) announcing that the financial information disclosed from 2020 to 2023 is severely inaccurate [2][4][6]. - The company received a notice of investigation from the CSRC in June 2024 for "suspected violations of information disclosure" [6]. Stock Market Activity - The stock price has experienced volatility, dropping below 1 yuan multiple times, with a notable decline following regulatory announcements. The stock was at 3.08 yuan on December 13, 2024, but has since faced downward pressure [10][11]. - Following the announcement of the CSRC's investigation on February 28, the stock price accelerated its decline, falling back below the 1 yuan warning line [11]. Restructuring and Liquidity Issues - The company announced liquidity constraints affecting its financial operations, including a restriction on the withdrawal of 1.6 billion yuan in deposits [7]. - Despite attempts at pre-restructuring, the company has indicated risks of not meeting restructuring conditions due to ongoing investigations and financial instability [11][12]. Regulatory Environment - The regulatory environment has become increasingly stringent, with the CSRC intensifying efforts to combat financial fraud, reporting a 17% increase in cases of information disclosure violations in 2024 [14]. - The Shanghai Stock Exchange has also initiated disciplinary procedures against Oriental Group for its information disclosure violations and is closely monitoring its trading activities [15].