Core Viewpoint - Fujian Zitian Media Technology Co., Ltd. (*ST Zitian) is entering a delisting arrangement period due to financial fraud, with the last trading date expected to be October 13, 2025 [1][4]. Summary by Sections Company Status - *ST Zitian's stock has been suspended since July 21, with a closing price of 2.74 yuan per share and a total market value of 440 million yuan before suspension [2]. - The stock will resume trading on September 15 and enter a delisting arrangement period lasting 15 trading days, during which the stock name will change to "Zitian Tui" but the stock code will remain the same [2]. Financial Misconduct - The company has been found to have inflated revenues by a total of 2.499 billion yuan over two years (2022-2023) through various fraudulent means, including fictitious internet advertising fees and other services [3]. - In the 2022 annual report, *ST Zitian inflated revenue by 778 million yuan and profit by 85 million yuan, which constituted 44.59% and 35.99% of total revenue and profit, respectively [2]. - In the 2023 semi-annual report, the company prematurely recognized revenue of 207 million yuan and profit of 79 million yuan, with the inflated profit accounting for 51.64% of the total profit for that period [3]. Regulatory Actions - The China Securities Regulatory Commission (CSRC) imposed a fine of 38.4 million yuan on *ST Zitian and its management for the fraudulent activities, with lifetime market bans for the former chairman and CFO [3]. - The Shenzhen Stock Exchange (SZSE) decided to terminate the company's stock listing due to failure to rectify financial reports within the required timeframe and ongoing fraudulent activities [4].

Core Viewpoint - The company *ST Zitian has been terminated from listing on the Shenzhen Stock Exchange due to financial misconduct, including false accounting reports and failure to rectify issues as mandated by regulatory authorities [1][4]. Group 1: Termination of Listing - On September 5, the Shenzhen Stock Exchange made a decision to terminate the listing of *ST Zitian [1]. - The company's stock will resume trading on September 15 and enter a delisting preparation period lasting 15 trading days, after which it will be delisted [4]. Group 2: Financial Misconduct - *ST Zitian has been found to have inflated revenues by a total of 24.99 billion yuan over two consecutive years, with significant discrepancies in three periodic reports [5]. - In the 2022 annual report, the company falsely reported internet advertising fees and other services, inflating revenue by 778 million yuan, which accounted for 44.59% of total revenue, and profit by 85 million yuan, representing 35.99% of total profit [6]. - The 2023 semi-annual report showed an inflated revenue of 208 million yuan and profit of 79 million yuan, which constituted 14.56% and 51.64% of total revenue and profit, respectively [6]. - The 2023 annual report indicated an inflated revenue of 1.721 billion yuan, making up 78.63% of total revenue, due to improper revenue recognition practices [6]. Group 3: Regulatory Actions and Penalties - The Fujian Securities Regulatory Bureau has imposed a total penalty of 38.4 million yuan on *ST Zitian and its management for the fraudulent activities and failure to disclose important information [6]. - The former chairman and CFO of the company have been banned from the securities market for life due to their roles in the misconduct [6]. - Legal actions have been initiated by investors for civil compensation, and criminal investigations have been launched regarding the company's accounting practices [7].

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].

Core Viewpoint - *ST Zitian is facing significant delisting risks due to financial fraud, obstruction of law enforcement, and failure to disclose annual reports on time [1][5]. Financial Fraud - *ST Zitian inflated its revenue by nearly 2.5 billion yuan from 2022 to 2023, with specific instances including a 778 million yuan inflation in the 2022 annual report and a 207 million yuan inflation in the 2023 semi-annual report [1][2]. - The 2023 annual report showed an inflated revenue of 1.721 billion yuan due to improper revenue recognition methods [2]. Legal Penalties - The Fujian Securities Regulatory Bureau has imposed penalties on *ST Zitian and 12 responsible individuals for their illegal activities, including fines and lifetime market bans for certain individuals [3]. - The company faces a fine of 3.5 million yuan for failing to disclose the 2024 annual report on time, along with additional fines for its executives [4]. Delisting Risks - The company's stock price has dropped nearly 60% since the beginning of the year due to the aforementioned issues, leading to a warning about potential delisting [5][7]. - If *ST Zitian does not rectify its issues by July 19, 2025, its stock will be delisted, and it may face mandatory delisting due to serious violations [7].

Core Viewpoint - *ST Zitian is facing significant delisting risks due to financial fraud, obstruction of law enforcement, and failure to disclose annual reports on time [2][12]. Financial Fraud - *ST Zitian inflated its revenue by nearly 2.5 billion yuan from 2022 to 2023 [4]. - In the 2022 annual report, the company fabricated internet advertising fees and SMS service revenues, resulting in an inflated revenue of 778 million yuan, which accounted for 44.59% of annual revenue, and an inflated profit of 85 million yuan, representing 35.99% of total profit [4]. - In the 2023 semi-annual report, the company prematurely recognized revenue of 207 million yuan from cloud services that had not commenced, leading to an inflated revenue of 207 million yuan, which was 14.56% of the period's revenue, and an inflated profit of 79 million yuan, accounting for 51.64% of total profit [5]. - In the 2023 annual report, *ST Zitian's subsidiary improperly recognized revenue of 1.721 billion yuan due to not obtaining control over goods, which constituted 78.63% of the period's revenue [7]. Regulatory Actions - The Fujian Securities Regulatory Bureau imposed penalties on *ST Zitian and 12 responsible individuals for the aforementioned violations, including fines and lifetime market bans for some individuals [8]. - The company failed to disclose its 2024 annual report within the legal timeframe, leading to a proposed administrative penalty of 3.5 million yuan and warnings for several executives [10]. - The company is also facing penalties for obstructing law enforcement, with a proposed fine of 1 million yuan for the company and a total of 2.8 million yuan for related management personnel [11]. Delisting Risks - Due to the outlined violations, *ST Zitian issued a risk warning regarding the potential termination of its stock listing [13]. - The company was ordered to rectify its issues by February 14, 2025, but has not yet complied. If not rectified by July 19, 2025, the stock will be delisted [15]. - The company's stock price has dropped nearly 60% since the beginning of the year until its suspension [16].