Core Viewpoint - *ST Guandao (839680.BJ) is likely to become the first company to be forcibly delisted from the Beijing Stock Exchange due to significant violations, following seven consecutive years of financial fraud [1][4]. Group 1: Financial Fraud Details - The company has been systematically committing financial fraud from 2018 to mid-2024, inflating revenue and costs through fake contracts, invoices, and other documents [6][7]. - The inflated revenue figures for the years 2018 to mid-2024 are as follows: 143 million, 192 million, 223 million, 249 million, 304 million, 283 million, and 72 million, representing 87.34%, 95.39%, 98.96%, 85.87%, 99.39%, 98.14%, and 88.11% of the reported amounts respectively [7]. - The inflated costs during the same period were 65 million, 85 million, 117 million, 133 million, 163 million, 152 million, and 39 million, with proportions ranging from 83.30% to 99.13% of the reported costs [7]. Group 2: Regulatory Actions and Penalties - The China Securities Regulatory Commission (CSRC) has publicly disclosed the seven-year financial fraud, leading to severe penalties for the company's executives [6][10]. - The former chairman and actual controller, Jin Wenming, was fined 15 million and banned for life from the securities market for his role in the fraud [10]. - Other executives, including the former director and financial officer, were also penalized and banned from the market, with the company facing public condemnation and a five-year ban on new listings [10]. Group 3: Impact on Investors and Market - Minmetals Securities, the company's sponsor, failed to fulfill its oversight responsibilities, leading to a proposed 220 million fund to compensate affected investors [11]. - As of June 30, 2025, there were 6,634 shareholders of *ST Guandao, and the compensation fund aims to address their losses due to the company's fraudulent disclosures [11]. - This case serves as a reminder for investors to be cautious in selecting investment targets and emphasizes the need for stricter regulatory oversight of listed companies [11].