Core Viewpoint - China Zhongqi Investment Co., Ltd. (China Zhongqi) announced that its controlling shareholder, Zhongqi Group Co., Ltd., received a notice of investigation from the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws [1][3]. Group 1: Investigation and Regulatory Actions - The CSRC has decided to investigate Zhongqi Group due to its failure to timely disclose financial reports as a bond issuer, which is a violation of the Securities Law and the Administrative Penalty Law of the People's Republic of China [3]. - Zhongqi stated that the investigation will not have a significant impact on its production, operations, or financial aspects, and it will continue to monitor the situation and fulfill its disclosure obligations as required by law [3]. - The investigation is linked to Zhongqi Group's failure to disclose its annual report for 2023 and its interim report for 2024 within the stipulated time frames, leading to administrative penalties including a warning letter [3][4]. Group 2: Company Background and Financial Performance - China Zhongqi was established in August 1994 and listed on the Shenzhen Stock Exchange in July 2000, primarily engaged in automotive services including sales, maintenance, and financial services [4]. - In 2022, the company reported revenue of approximately 31.78 million yuan, a year-on-year decrease of 35.77%, and a net loss attributable to shareholders of approximately 3.4 million yuan [4]. - Due to negative financial performance, including an inability to meet the minimum revenue threshold, the company's stock was subject to delisting risk warnings starting May 5, 2023, and was ultimately delisted on June 8, 2024, following an audit report that could not express an opinion [4]. Group 3: Regulatory Environment and Market Implications - The regulatory environment is tightening, with an increasing number of delisted companies facing penalties, reflecting a broader trend of accountability in the market [5][6]. - Market experts believe that the "full-chain accountability" model implemented by regulators will effectively deter illegal activities in the market, with expectations for enhanced enforcement of the "delisting does not exempt from liability" principle [7].

Core Viewpoint - The article discusses the investigation of China Zhongqi's controlling shareholder by the China Securities Regulatory Commission (CSRC) for violations related to information disclosure, emphasizing that delisting does not exempt companies from accountability [3][6]. Group 1: Investigation Details - China Zhongqi's controlling shareholder, Zhongqi Group Co., Ltd., received a notice of investigation from the CSRC on October 11, 2023, for suspected violations of information disclosure laws [3][6]. - The investigation is linked to Zhongqi Group's failure to timely disclose financial reports as a bond issuer, violating the relevant regulations [6][7]. - The CSRC previously issued a warning to Zhongqi Group and its responsible person for not disclosing the annual report and interim report within the required timeframes [6][7]. Group 2: Company Background and Financial Performance - China Zhongqi was established in August 1994 and listed on the Shenzhen Stock Exchange in July 2000, primarily engaged in automotive services [7]. - In 2022, the company reported revenue of approximately 31.78 million, a year-on-year decrease of 35.77%, and a net loss attributable to shareholders of about 3.4 million [7]. - Due to negative net profits and insufficient revenue, the company's stock was placed under delisting risk warning on May 5, 2023, and subsequently delisted on June 8, 2024, following an audit report that could not express an opinion [7]. Group 3: Regulatory Environment and Implications - The article highlights a growing trend of regulatory accountability for companies that have been delisted, with several companies facing penalties since August 2023 [7][8]. - Market experts believe that the "full-chain accountability" model will effectively deter illegal activities in the market, with expectations for strengthened enforcement of the "delisting does not exempt" principle [8].