Core Viewpoint - The article discusses the severe administrative penalties imposed by the China Securities Regulatory Commission (CSRC) on Hainan Puli Pharmaceutical Co., Ltd. (*ST Puli*) for significant financial fraud, leading to the initiation of delisting procedures by the Shenzhen Stock Exchange [1][2]. Summary by Sections Financial Fraud Confirmation - *ST Puli* was found to have significant false records in its 2021 and 2022 annual reports, with a total profit inflation exceeding 500 million yuan, accounting for over 50% of the reported profits [1][2]. - The total inflated revenue for these two years reached 1.03 billion yuan, representing 31.08% of the total reported revenue [2]. - The inflated profit totaled 695 million yuan, which is 76.72% of the total reported profit for the same period [2]. Delisting Procedures - Due to the financial fraud, *ST Puli* triggered the conditions for mandatory delisting as per the regulations of the Growth Enterprise Market [2]. - The company’s stock will be delisted, and its convertible bonds will also be terminated or delisted [2]. Comprehensive Accountability Measures - The CSRC emphasized that administrative penalties and delisting are not the end of the process, as they will pursue comprehensive accountability for the involved parties [4]. - The CSRC will also investigate potential criminal activities related to the fraud and will refer cases to law enforcement as necessary [4]. Investor Protection Initiatives - The China Securities Investor Services Center will assist eligible investors who suffered losses due to the fraud through various legal means [4]. - The CSRC is committed to enhancing the mechanisms for preventing and punishing financial fraud in the capital market, including the establishment of a comprehensive accountability system [5]. Regulatory Actions and Statistics - In 2024, the CSRC handled 739 cases and issued 592 administrative penalties, with a total fine amounting to 15.342 billion yuan, which is 2.4 times that of 2023 [5][6]. - The CSRC has intensified its crackdown on financial fraud, with 178 cases referred to law enforcement in 2024 [6]. - The regulatory body aims to increase the costs of violations and ensure that financial fraud is met with severe consequences, thereby protecting investors' rights [6].