Core Viewpoint - The company Luqiao Information (920748) has been exposed for financial fraud over the past two years, misleading investors by inflating profits, and is now facing severe regulatory consequences [1]. Financial Misconduct - Luqiao Information received a notice from the China Securities Regulatory Commission (CSRC) regarding the initiation of an investigation on October 14, 2025 [1]. - The company had previously issued two announcements on September 29, 2025, revealing serious financial issues, including a directive from the Xiamen Securities Regulatory Bureau to correct its financial statements [3][4]. Financial Data Adjustments - The company significantly adjusted its financial data for 2023 and 2024, with the net profit for 2023 revised from 22.56 million to 9.55 million, a reduction of 57.68% [5]. - For 2024, the net profit was adjusted from 22.81 million to 3.72 million, a staggering reduction of 83.69% [5]. - The adjustments for non-recurring profit and loss were even more drastic, with 2024's adjusted net profit dropping from 19.52 million to 0.425 million, a decline of 97.82% [5]. Stock Price Impact - Following the exposure of the financial fraud, Luqiao Information's stock price fell sharply, dropping 6.55% on September 30, 2025, and continuing to decline by 17.24% in the following trading day [6]. - After the announcement of the investigation on October 15, 2025, the stock price further decreased by 8.13% and 11.45% in the subsequent two trading days [6]. Investor Compensation - With the initiation of the CSRC investigation, affected investors are eligible to file compensation lawsuits [7]. - The conditions for compensation include investors who purchased Luqiao Information's stocks or bonds between April 22, 2024, and September 29, 2025, and sold or held them after September 30, 2025 [7].