GuShiio.com ① Zitian Technology announced on Friday evening that it might not be able to complete the rectification matters ordered by the regulatory authorities within a time limit, and there is a risk of terminating the listing;
② From financial fraud to obstruction of law enforcement, from collective loss of executives to refusal to cooperate with regulatory investigations, Zitian Technology, the “most powerful nail dealer”, cannot “escape” the bitter fruit after all.
Financial Union, March 2 (Reporter Liu Yue)From financial fraud to obstruction of law enforcement, from collective loss of executives to refusal to cooperate with regulatory investigations, Zitian Technology (300280.SZ), the “most powerful nail dealer”, cannot “escape” the bitter fruit. It announced on February 28 that it may not be able to complete the rectification matters ordered by the regulatory authorities within a time limit, and there is a risk of terminating the listing.
Some industry insiders told reporters from the Financial Union that the Zitian Technology incident exposed serious governance problems and moral hazard in some companies in the capital market. Any behavior that challenges regulatory authority and undermines market order will be severely punished.
Has been filed by the China Securities Regulatory Commission many times
Zitian Technology announced on the evening of February 28 that the company received a decision from the Fujian Securities Regulatory Bureau ordering corrections on February 14, 2025, requiring revision and disclosure of relevant annual reports within 30 days and timely disclosure of relevant major events.Due to tight time, heavy workload, and failure to hire an accountant, the company risks being unable to complete the above-mentioned rectification matters within the specified time limit。
The announcement mentioned thatIf the company fails to complete the rectification matters within the specified time limit, the Shenzhen Stock Exchange may suspend the company’s shares.If the rectification is not completed within two months after the suspension, a delisting risk warning will be issued for the company’s stock trading. As of the disclosure date of the announcement, the company has not yet hired an accounting firm with securities and futures related business qualifications.
It is worth noting that the company and related personnel have been filed by the CSRC many times. In November 2023, Zitian Technology and its controlling shareholder Anchang Investment were investigated and punished. On September 6, 2024, the China Securities Regulatory Commission decided to initiate an investigation against Zitian Technology in accordance with the law on suspicion of illegal information disclosure. On October 25, 2024, on suspicion of refusing to obstruct law enforcement, the China Securities Regulatory Commission decided to initiate an investigation against Zitian Technology and Zitian Technology Chairman and Secretary of the Board of Directors Song Qing, General Manager Li Lin, and Financial Director LIXIANG (Li Xiang) in accordance with the law.
In addition to the above two investigations by the China Securities Regulatory Commission, Zitian Technology was also investigated by the Fuzhou City Public Security Bureau on suspicion of concealing accounting vouchers, accounting books, and financial accounting reports. After the Fuzhou City Public Security Bureau filed an investigation into Zitian Technology, the investigators contacted Song Qing, Li Lin, LIXIANG (Li Xiang) and others many times by telephone, text message, etc., but received no response.
On the evening of February 14, Zitian Technology issued an announcement stating that the company had received the “Advance Notice of Administrative Punishment” issued by the Fujian Securities Regulatory Bureau. The Fujian Securities Regulatory Bureau plans to impose a fine of 1 million yuan on Zitian Technology, and impose a fine of 800,000 yuan on Yao Xiaoxin, the person who actually performs the equivalent position of the person in charge of the company, Song Qing, the chairman and secretary of the board, Li Lin, the general manager, and LIXIANG (Li Xiang), the financial director. At the same time,All of the above-mentioned personnel have been banned from entering the securities market for 10 years。
At the same time, the Fujian Securities Regulatory Bureau also issued an administrative penalty decision on Beijing Yatai (the auditor of Zitian Technology’s 2023 annual report) and Tian Mengjun’s refusal to comply with and obstruction of law enforcement. Beijing Yatai was fined 1 million yuan and Tian Mengjun was fined 600,000 yuan and a six-year ban on securities market entry.
Regarding the financial fraud of listed companies, the regulatory authorities have always adhered to a strong and strict supervision attitude. On February 1, Wu Qing, Chairman of the China Securities Regulatory Commission, wrote an article in the latest issue of Qiushi magazine, pointing out that efforts should be made to prevent counterfeiting and counterfeiting, implement the opinions on comprehensive punishment and prevention of financial fraud in the capital market, and further improve clues such as financial fraud. Discovery capabilities, further improve corporate governance, and strengthen market constraints such as internal control of listed companies and the role of intermediaries as “gatekeepers”.
1.2 billion executives with huge losses staged “hide-and-seek”
Zitian Technology was formerly known as Nantong Forging. When it was listed in 2011, its main business was forging equipment manufacturing. Through mergers and acquisitions, the advertising media business was transformed. In 2018, the company changed its name to Zitian Technology, and its main business was changed to Internet advertising.
Zitian Technology’s 2023 annual report shows that the net profit attributable to the parent company has exploded and suffered a huge loss of 1.21 billion yuan. The occurrence of significant losses in 2023 results is a major event, but the company did not disclose them in a timely manner, and the annual financial data is significantly different from the previously disclosed first, interim and third quarterly reports.
Faced with this situation, the Shenzhen Stock Exchange issued a special inquiry letter to Zitian Technology on May 6 of the same year, paying attention to a series of issues such as the huge differences in financial indicators in its annual report and interim report and the authenticity of its business model. However, Zitian Technology successively issued announcements of postponed replies, and the chairman refused to communicate substantively on grounds such as physical discomfort.
“Song Qing, chairman of your company (acting secretary of the board of directors), successivelyRefused to substantive communication on the grounds of personal discomfort and not being responsible for specific reply work。”On May 28 of the same year, the Shenzhen Stock Exchange stated in a “Letter of Concern” to Zitian Technology.
At the same time, Zitian Technology’s audit institutions do not cooperate with the supervision work. The fine shows that when the Fujian Securities Regulatory Bureau supervised and inspected the 2023 financial report audit project of Zitian Technology, Beijing Yatai International Certified Public Accountants and its executive partner Tian Mengjun neither provided audit papers nor cooperated with the interview work, and even “Refusing to answer phone calls and text messages”。
I once stepped on two hot spots
In 2023, Zitian Technology will take advantage of the two major trends of computing power leasing and interactive movie games. In the first half of the year, the company became an out-and-out bull stock in computing power, with its share price rising by 192%. In the second half of the year, with the real-life interactive video game “It’s over! I am surrounded by beautiful women!” The company’s share price nearly doubled within 17 trading days.
In terms of the concept of computing power leasing, at the end of 2022, Zitian Technology’s prepayment balance was approximately 900 million yuan, of which the prepayment balance to the largest prepayment object was approximately 810 million yuan. Zitian Technology replied at that time,The prepayment is mainly for the purchase of high-end servers。Due to the significant increase in market demand for computing power in 2022, the purchase demand for high-end servers will also increase significantly. Listed companies plan to deploy data center business areas in 2023 and have signed multiple cloud service orders.
Taking advantage of the concept of computing power leasing, Zitian Technology’s share price rose sharply in the first half of 2023, and then fell to a high level. The share price ushered in new opportunities in the second half of the year.
October 17, 2023, a real-life interactive video game priced at 42 yuan“Finished! I am surrounded by beautiful women!” Since its launch, the entire network has been popular, and the interactive movie tour track where he is located has become the focus of institutional attention. Hippo Games, a subsidiary of Zitian Technology, will cooperate with Qishu Youyu in the field of interactive film and television games.Strange Tree and Fish announced that it will compete with “It’s over! I am surrounded by beautiful women!” Chief producer Han Chao’s team established cooperation, launched a number of interactive movie and television games that simulate love. Zitian Technology’s share price rose on the wind, and its share price nearly doubled in the 17 trading days after “Finished” was launched.
The tide receded. As of February 28, Zitian Technology closed at 14.46 yuan/share, with a total market value of 2.343 billion yuan. The announcement shows that the company will have a projected loss of 150 million yuan to 220 million yuan for the whole year of 2024.
