Core Viewpoint - The company *ST Xulan is facing severe financial and regulatory challenges, including a significant risk of delisting due to continuous stock price decline and ongoing investigations by regulatory authorities [2][12][15]. Group 1: Regulatory Issues - The actual controller of *ST Xulan, Li Zhaoting, is under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws [1][12]. - This marks the third time within a year that the company and its related parties have been involved in regulatory scrutiny, indicating systemic governance failures [13][14]. - The company has been subjected to multiple regulatory actions, including a notice for rectification regarding the return of 7.796 billion yuan in non-operating funds, which remains unresolved [6][12]. Group 2: Financial Performance - As of March 14, *ST Xulan's stock price has fallen below 1 yuan for nine consecutive trading days, with a current price of 0.86 yuan per share, leading to a market capitalization of only 1.3 billion yuan [2]. - The company's financial situation has deteriorated significantly, with a reported revenue decline of 50.94% to 1.489 billion yuan in 2023 and cumulative losses exceeding 3 billion yuan from 2019 to 2023 [7][8]. - The company is projected to incur a net loss of 300 to 500 million yuan in 2024, with substantial uncertainties regarding the resolution of non-operating fund issues [8]. Group 3: Delisting Risks - If *ST Xulan's stock price remains below 1 yuan for 20 consecutive trading days, it will face mandatory delisting [2]. - The company has already been placed under delisting risk warnings due to its financial and operational issues, including a negative internal control report for 2023 [9][15]. - The ongoing investigations and the inability to return misappropriated funds have severely limited the company's options for restructuring or reorganization, further heightening delisting risks [15][19]. Group 4: Corporate Governance - The company's governance structure has been called into question due to repeated regulatory violations and the inability to manage financial resources effectively [14]. - The legal restrictions imposed by the CSRC during the investigation period prevent the company from pursuing asset restructuring, which is often seen as a lifeline for companies facing delisting [15][16]. - The significant amount of misappropriated funds (7.527 billion yuan) has deterred potential restructuring parties, complicating the company's path to recovery [17][19].