The China Securities Regulatory Commission (CSRC) has issued an administrative penalty decision against Gaohong Co., Ltd. (now trading as "Gaohong 3"), imposing a total fine of 135 million yuan on the company for falsifying periodic reports and engaging in fraudulent issuance activities.

The investigation found that Gaohong committed the following violations: First, the company's annual reports from 2015 to 2023 contained false records. Gaohong inflated revenue and profits by participating in fraudulent laptop trade businesses and organizing fake IT system product trade operations. Specifically, the company overstated operating revenue by 694 million yuan, 2.452 billion yuan, 2.420 billion yuan, 2.286 billion yuan, 5.634 billion yuan, 2.483 billion yuan, 1.805 billion yuan, 735 million yuan, and 394 million yuan respectively during these years, representing 9.34%, 28.27%, 26.97%, 24.67%, 49.38%, 35.38%, 21.11%, 10.72%, and 6.65% of the disclosed operating revenue for each period. Profits were inflated by 673,600 yuan, 2.4388 million yuan, 2.4224 million yuan, 12.828 million yuan, 21.9052 million yuan, 15.4238 million yuan, 8.9446 million yuan, 3.7074 million yuan, and 7.8821 million yuan respectively, accounting for 0.42%, 1.44%, 0.99%, 13.56%, 64.88%, 11.35%, 22.11%, 6.44%, and 0.50% of the absolute value of disclosed profits for each period.

During the period in question, Fu Jinglin served as Chairman and General Manager of Gaohong, while Ding Mingfeng held positions including CFO, Board Secretary, and Deputy General Manager. The CSRC determined that both individuals failed to fulfill their duties diligently and were directly responsible for the company's violations.

Additionally, Jiang Qing, spouse of Gaohong director Cao Bingjiao and actual controller of Nanjing Qingya (a party involved in the fake trades), was aware that the laptop trade business constituted circular "paper" transactions that would artificially inflate Gaohong's performance. Despite this knowledge, Jiang proactively contacted Gaohong Technology to initiate cooperation and incorporate it into the trade chain. This conduct constituted joint illegal activity with Gaohong's information disclosure violations from 2015 to 2021.

Second, Gaohong engaged in fraudulent issuance. The company's 2020 private placement stock offering documents referenced false business revenue and profit data from 2018 to 2020. Gaohong raised a total of 1.25 billion yuan through this offering. The offering documents contained materially false information, constituting fraudulent issuance. Fu Jinglin and Ding Mingfeng were directly responsible for this violation.

Based on these findings, the CSRC has ordered Gaohong to make corrections, issued a warning, and imposed a fine of 135 million yuan. Relevant responsible individuals have also been warned and fined amounts ranging from 750,000 yuan to 7.5 million yuan.

The CSRC noted that Fu Jinglin and Jiang Qing committed particularly serious violations, while Ding Mingfeng's violations were severe. Consequently, Fu Jinglin and Jiang Qing have been banned from the securities market for 10 years, and Ding Mingfeng has been banned for 5 years.

Public information shows that Gaohong was established as a high-tech enterprise by the Academy of Telecommunications Science and Technology Co., Ltd. and listed in 2003. In recent years, the company's operations have deteriorated. It was designated as "ST" in May 2024 after its 2024 financial statements received a "disclaimer of opinion" from auditors, and was further labeled "*ST" in May 2025.

In November 2025, *ST Gaohong received a delisting decision from the Shenzhen Stock Exchange after its stock price closed below 1 yuan for 20 consecutive trading days, triggering a "face value delisting." Following the delisting, the company's shares were transferred to the Over-the-Counter market for trading under the code "Gaohong 3."

On the evening of April 17, Gaohong 3 announced that the company and related parties had received the CSRC's "Administrative Penalty Decision." The company stated that this penalty will significantly adversely affect its production and operations, further exacerbating its already difficult business situation.