ST Cube Faces Heavy Penalty for Financial Fraud, Affected Investors Eligible for Compensation

Deep News
Dec 24, 2025

Affected investors can register their claims on the SINA Corp investor rights protection platform: http://wq.finance.sina.com.cn/. Follow @SINA Securities on social media or visit the SINA Finance app or homepage for more information.

1. Regulatory Pre-Penalty Notice Recently, ST Cube's auditing firm, Zhongxingcai Guanghua CPA, received a "Pre-Penalty Notice" from the China Securities Regulatory Commission (CSRC) for its involvement in financial fraud cases, including ST Cube. The firm risks suspension of its securities business, prompting listed companies such as ST Tianyu and National Technology to urgently replace their auditors.

On November 28, 2025, ST Cube announced it had received a "Pre-Penalty and Market Ban Notice." Zhongxingcai Guanghua's troubles stem from ST Cube's financial fraud case. The Anhui Securities Regulatory Bureau found that ST Cube had inflated revenue and profits for three consecutive years (2021–2023), constituting a major violation that could trigger forced delisting. Zhongxingcai Guanghua served as the annual auditor during this period.

Lawyer Liu Peng of Shanghai Huzi Law Firm stated that the pre-penalty notice marks the beginning of investor claims and will provide strong evidence for subsequent lawsuits.

Investors who purchased ST Cube shares between April 25, 2022, and April 28, 2025 (inclusive) and sold or held them after April 29, 2025, suffering losses, may be eligible for compensation.

2. False Financial Reporting Investigations revealed that the company engaged in prolonged and systematic financial fraud through proxy business, financing-related trade, and fictitious transactions, artificially inflating revenue and costs.

Key financial data also breached delisting thresholds. Notably, the falsified revenue for 2021 and 2022 totaled 592 million yuan, accounting for 50.91% of the disclosed annual revenue—exceeding the Shenzhen Stock Exchange’s delisting criteria for major violations.

Regulatory penalties will persist even if the company is delisted. ST Cube’s auditing firm has also been named as a defendant in follow-up lawsuits. Affected investors should verify if their losses fall within the specified period to participate in claims.

(Contributed by Lawyer Liu Peng of Shanghai Huzi Law Firm, specializing in securities litigation for 19 years with a 99.2% success rate in over 14,000 cases.)

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