Core Viewpoint - Fujian Zitian Media Technology Co., Ltd. (*ST Zitian) and related personnel have been penalized by the Fujian Securities Regulatory Bureau for multiple violations of information disclosure from 2022 to 2023 [1][2]. Group 1: Violations and Findings - The investigation revealed that *ST Zitian engaged in false reporting in its 2022 annual report, including: - Internet advertising fee recharge business: The subsidiary Zitian Zhixun did not obtain control over the goods and should have recognized revenue using the net method, but the company used the gross method, inflating reported revenue by 228 million yuan and corresponding costs by the same amount [2]. - SMS sending service business: - Internal transactions between subsidiaries were not offset, leading to inflated revenue by 277 million yuan, costs by 263 million yuan, and profit by 13.91 million yuan. - Fabricated SMS sending service business and acceptance documents, inflating revenue by 273 million yuan, costs by 201 million yuan, and profit by 71.37 million yuan. - Overall, the 2022 annual report was inflated by 779 million yuan in revenue, 465 million yuan in costs, and 85.29 million yuan in profit [2]. - In the 2023 semi-annual report, revenue was prematurely recognized for cloud services that had not commenced, inflating revenue by 208 million yuan and profit by 79.37 million yuan [2]. - The 2023 annual report also falsely reported revenue from the subsidiary Ningbo Maili's internet advertising fee recharge business, inflating revenue by 1.721 billion yuan and corresponding costs by the same amount [2]. Group 2: Penalties and Consequences - The Fujian Securities Regulatory Bureau ordered *ST Zitian to rectify its practices, issued a warning, and imposed a fine of 8.5 million yuan [3]. - Key personnel, including former Chairman and General Manager Yao Xiaoxin and Financial Director Li Xiang, were held accountable for the false reporting and received warnings along with fines ranging from 500,000 yuan to 4 million yuan. Both Yao Xiaoxin and Li Xiang face lifetime bans from the securities market [3].