Core Viewpoint - The article discusses the legal issues faced by Ruiskanda Technology Development Co., Ltd. due to violations related to information disclosure, leading to criminal measures against key executives and a significant impact on the company's operations and stock performance [1][7][10]. Company Overview - Ruiskanda was founded on June 8, 1999, and is headquartered in Beijing, specializing in the manufacturing and development of communication equipment and software [4]. - The company primarily engages in the research, production, and sales of transmission and broadband network equipment, as well as software products and technical services [4]. Recent Developments - On July 5, 2025, the company announced that its Chairman and General Manager, Li Yuejie, and Director Zhu Chuncheng were subjected to criminal measures for suspected violations of important information disclosure laws [1]. - In the absence of Li Yuejie, Vice General Manager Han Meng has been appointed to act as Chairman and General Manager [1]. Financial Performance - As of the end of 2024, Li Yuejie and Zhu Chuncheng each held 38,693,251 shares, with an annual salary of 1.2489 million yuan [5][6]. - As of July 7, 2025, Ruiskanda's stock price was 9.55 yuan, reflecting a decline of 2.45%, with a total market capitalization of 4.1 billion yuan [6]. Legal and Regulatory Issues - The legal issues stem from a previous administrative penalty by the China Securities Regulatory Commission (CSRC) in September 2023, which imposed a fine of 2 million yuan on Ruiskanda for information disclosure violations [7][9]. - The violations are linked to the "special network communication case," which involved inflated financial reports from 2019 to 2020, with reported inflated revenues of 351 million yuan and 281 million yuan for those years, respectively [9][10]. Business Model Concerns - Ruiskanda's subsidiary, Beijing Deep Blue Xun Tong Technology Co., Ltd., was involved in a controversial business model that provided funding for upstream suppliers while misrepresenting its financial health [8][9]. - This model has been criticized as a "false self-circulation business" and has led to significant scrutiny and penalties for multiple companies involved in similar practices since 2021 [10]. Industry Context - The "special network communication case" has been described as one of the largest frauds in A-shares, with cumulative penalties exceeding 90 billion yuan across multiple companies [10]. - Ruiskanda's recent financial performance has been declining, with a reported revenue of 1.382 billion yuan in 2024, a year-on-year decrease of 14.99%, and a net loss of 122 million yuan [10].