Behind seemingly impressive financial data, there may be hidden massive financial fraud schemes. Once exposed, companies not only face delisting, but investors suffer devastating losses.

According to a message released by the China Securities Regulatory Commission (CSRC) on October 10, the CSRC recently issued an administrative penalty notice regarding false records in *ST Yuancheng's periodic reports and other financial data.

A three-year consecutive financial fraud scheme has finally been exposed under regulatory crackdowns, leaving tens of thousands of investors facing significant losses.

Upon investigation, *ST Yuancheng committed financial fraud for three consecutive years, violating securities laws and regulations. The CSRC plans to impose a fine of 37.4546 million yuan on the listed company, a combined fine of 42 million yuan on five responsible personnel, and a 10-year securities market ban on the actual controller. The penalty results once again demonstrate the regulatory authorities' firm "zero tolerance" stance toward financial fraud.

**Regulatory Crackdown: "Zero Tolerance" Stance on Financial Fraud Continues to Strengthen**

The A-share market purification campaign is being comprehensively upgraded, with unprecedented regulatory crackdown intensity on financial fraud.

According to statistics, 13 companies have already triggered mandatory delisting for major violations due to financial fraud this year. This figure points to a clear regulatory signal - financial fraud is no longer just penalized with fines, but directly leads to delisting.

Taking the latest case of *ST Yuancheng as an example, the company's financial fraud was not only large in scale but also prolonged, directly triggering the red line for mandatory delisting due to major violations.

According to the pre-penalty notice received by the company, its annual reports from 2020 to 2022 all contained false records. More seriously, *ST Yuancheng also fabricated major false content in its private placement documents, constituting fraudulent issuance.

The Shanghai Stock Exchange will initiate delisting procedures in accordance with the law, meaning *ST Yuancheng may face the capital market's most severe punishment - mandatory delisting.

**Massive Fraud: Shocking Amounts and Methods**

Apart from *ST Yuancheng, the financial fraud situations of other investigated companies are equally shocking.

For example, *ST Gaohong's financial fraud case spanned nearly ten years, with cumulative false increases in operating revenue of approximately 19.8 billion yuan and false increases in total profits exceeding 76.2 million yuan.

*ST Zitian's fraudulent behavior was even more astonishing, with fraud amounting to nearly 2.5 billion yuan over two years. During 2022-2023, the company used various methods to falsely increase revenue by a combined total of 24.99 billion yuan over two consecutive years.

Qingdao Zhongcheng, once hailed as a model of Qingdao's state-owned enterprise reform, ultimately met its downfall due to six consecutive years of systematic financial fraud and major information disclosure violations.

Oriental Netcom received a record-breaking regulatory fine of 229 million yuan for falsely increasing revenue and profits through subsidiary companies' fictitious business and premature revenue recognition, with the company's announced securities issuance documents containing fabricated major false content.

The above cases represent only a portion of the 13 listed companies. The A-share market ecosystem is undergoing profound changes, with increasingly resolute regulatory "zero tolerance" attitude toward financial fraud.

**Investor Rights Protection: Delisting Does Not Eliminate Responsibility**

As more and more listed companies' financial fraud cases are exposed, how affected investors can protect their rights has become a focus of social attention.

According to public information, among companies that triggered delisting due to financial fraud this year, 8 have completed delisting. These are Jinzhou Port, Zhuolang Technology, Puli Pharma, Qingdao Zhongcheng, Jiuyou Shares, Longyu Shares, Zitian Technology, and Oriental Group. Several others are also in the delisting process.

Except for Jinzhou Port, which currently does not solicit affected shareholders, other companies are all soliciting affected investors, and compensation claims for Longyu Shares and Zhuolang Technology have both achieved first-instance victories.

Legal experts indicate that delisting itself does not necessarily result in compensation, but investors have the right to claim compensation from delisted companies that have engaged in illegal activities.

Below are the organized stock compensation claim periods. Investors can check if they have transactions within these periods to register for claims:

1. Zhuolang Technology: Purchased between September 19, 2019 - March 14, 2024, and sold after March 15, 2024 or still held with losses

2. Puli Pharma: Purchased between April 26, 2022 - April 16, 2024, and sold after April 17, 2024 or still held with losses

3. Qingdao Zhongcheng: Purchased between April 25, 2018 - January 17, 2025 (inclusive), and sold after January 18, 2025 or still held with losses

4. Jiuyou Shares: Purchased between April 28, 2021 - December 19, 2024 (inclusive), and sold after December 20, 2024 or still held with losses

5. Longyu Shares: (1) Purchased between April 28, 2023 - April 29, 2024, and sold after April 30, 2024 or still held with losses (2) Purchased before December 16, 2024, and sold after December 17, 2024 or still held with losses

6. Zitian Technology: (1) Purchased between January 31, 2024 - April 30, 2024, and sold after May 1, 2024 or still held with losses (2) Purchased between April 28, 2023 - October 27, 2024, and sold after October 28, 2024 or still held with losses

7. Oriental Group: Purchased between April 30, 2021 - June 21, 2024, and sold after June 22, 2024 or still held with losses

8. Oriental Netcom: (1) Purchased between April 27, 2023 - April 29, 2024, and sold after April 30, 2024 or still held with losses (2) Purchased between April 29, 2020 - April 14, 2025 (inclusive), and sold after April 15, 2025 or still held with losses

9. Guangdao Digital: Purchased between April 11, 2019 - December 5, 2024, and sold after December 6, 2024 or still held with losses

10. Jiangsu Wuzhong: Purchased between April 20, 2019 - February 26, 2025 (inclusive), and sold after February 27, 2025 or still held with losses

11. Yuancheng Shares: (1) Purchased between April 15, 2021 - January 30, 2024, and sold after January 31, 2024 or still held with losses (2) Purchased between April 29, 2023 - April 27, 2024, and sold after April 28, 2024 or still held with losses (3) Purchased before July 1, 2025 (inclusive), and sold after July 2, 2025 or still held with losses

Jinzhou Port is not currently being represented by legal teams due to the absence of significant stock price decline after the disclosure date, making successful claims difficult.