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A central state-owned enterprise, Jihua Group (now listed as "ST Jihua (rights protection)", stock code: 601718), has officially received the "Administrative Penalty Decision" from the China Securities Regulatory Commission due to four years of systematic financial fraud. Following the enforcement of regulatory penalties, the compensation claims channel for affected investors in this case has now been fully activated.

According to the CSRC's investigation, ST Jihua's annual reports from 2018 to 2021 contained false statements. By engaging in financing-oriented trade and agency business, the company cumulatively inflated operating revenue by approximately 9.66 billion yuan over four years. Additionally, improper cross-period recognition of land sale income resulted in a 502 million yuan overstatement reduction in total profits for 2020, accounting for 60.26% of the total profits reported for that period.

Regarding these irregularities, the CSRC imposed a fine of 7 million yuan on ST Jihua, and a cumulative fine exceeding 15 million yuan on 13 related senior executives. As a result, the company's stock has been subjected to other risk warnings (ST). The latest data shows that as of September 11, 2026, ST Jihua's stock price has fallen to 1.94 yuan, with a total market value of only approximately 8.46 billion yuan.

With the progress of the investigation, affected investors are increasingly taking action to protect their rights, and various investor rights protection platforms have currently received multiple claims applications for this stock. Among them, the filing application submitted by the legal team of lawyer Liu Peng from Shanghai Huzi Law Firm has received approval from the Beijing Financial Court.

According to the Securities Law and relevant judicial interpretations, listed companies that cause investor losses due to false statements should bear civil liability for compensation. Currently, the legal team of lawyer Liu Peng from Shanghai Huzi Law Firm has preliminarily set the claims criteria as: investors who bought ST Jihua stock between April 26, 2019, and August 8, 2025 (inclusive), and sold it on or after August 9, 2025, or still hold it with losses. Eligible investors can register for rights protection in accordance with the law, to recover their investment losses.