Core Viewpoint - The Hong Kong Securities and Futures Commission (SFC) has ordered the suspension of trading for Da Shan Education (09986.HK) starting December 3, 2025, due to ongoing investigations into financial discrepancies and potential fraud [1][3][10]. Group 1: Trading Suspension - The SFC indicated that suspending Da Shan's shares is necessary to maintain a fair and orderly market while investigations are ongoing [3]. - Da Shan Education announced the trading halt on December 3, 2025, but did not provide further details regarding the reasons for the suspension [1]. Group 2: Financial Discrepancies - Da Shan Education's shares were previously suspended on March 30, 2023, after its former auditor identified several audit issues, including discrepancies related to software development projects and a UK acquisition [5]. - The SFC discovered significant differences between bank statements provided by Da Shan and those obtained independently, leading to suspicions of inflated bank balances by RMB 36.4 million and RMB 76.3 million as of June 30 and December 31, 2023, respectively, which represented 19% and 55% of the reported net asset value [5][6]. Group 3: Management Integrity Concerns - The SFC raised concerns about the integrity of Da Shan's management, particularly regarding the authenticity of the software development and UK acquisition transactions, as well as the submission of potentially forged bank statements [6]. - The SFC suspects that the resumption of trading in September 2024 was based on misleading information provided by Da Shan [6][10]. Group 4: Financial Performance - Da Shan Education has reported continuous losses since 2021, with a revenue of approximately RMB 41.5 million for the first half of 2024, a decrease of about RMB 6 million year-on-year, and a loss of approximately RMB 45.9 million compared to a loss of RMB 0.88 million in the same period the previous year [14]. - The company's cash reserves have significantly declined, with bank balances dropping by approximately 62.9% from RMB 5.2 billion at the end of 2024 to RMB 1.93 billion by June 30, 2025 [14].