Cube Number Technology Co., Ltd. (Cube Number Technology) announced on February 14 that it has been delisted due to three consecutive years of financial fraud, with revenue inflated by over 600 million yuan. Prior to this, the company’s stock price had experienced a cumulative increase of 314.9%.
In a series of announcements on the 14th, Cube Number Technology stated in its “Notice of Receipt of Pre-delisting Notification” that the company had falsely reported operating revenue for the years 2021 and 2022, totaling over 500 million yuan, exceeding 50% of the total annual operating revenue disclosed in those two years. The Shenzhen Stock Exchange proposed to terminate the listing of the company’s stock.
The announcement also mentioned that the company has the right to request a hearing or submit a written statement and defense. If a hearing is requested, the company should submit the application in writing to the Shenzhen Stock Exchange within five trading days from the date of receiving the notification, stating specific matters and reasons.
The notice stated that the company’s stock would be suspended from trading starting on February 24, 2026.
In another announcement released on the same day titled “Notice of Receipt of Administrative Penalty Decision,” Cube Number Technology listed specific details of the financial fraud in inflating operating revenue and operating costs from 2021 to 2023.
In 2021, the company inflated operating revenue by 280 million yuan, accounting for 50.09% of that year’s total operating revenue, and inflated operating costs by 277 million yuan, representing 60.61% of the total operating costs. In 2022, the company inflated operating revenue by 312 million yuan, constituting 51.67% of the total operating revenue for that year, and inflated operating costs by 305 million yuan, making up 53.54% of the total operating costs, with inflated profits totaling 510,400 yuan, equivalent to 0.33% of the absolute value of profits for that year. In 2023, the company inflated operating revenue by 24.00% of the total and operating costs by 27.55%.
Prior financial reports from Cube Number Technology indicated continuous losses from 2022 to 2024. The company’s “2025 Performance Forecast” released on January 39 reported an expected net loss of 180 to 210 million yuan for 2025, still maintaining a deficit.
Despite the poor performance, Cube Number Technology’s stock price saw a surprising phenomenon. According to a report by “21st Century Economic Report” on February 14, starting from January 20, after already dropping below 1 yuan per share, Cube Number Technology’s (*ST Cube) stock price was suddenly hyped by speculative capital. By February 5, excluding the three trading days suspended from January 30 to February 3 for verification, the company’s stock price had hit the daily limit up seven times within ten trading days, accumulating a total increase of 314.9%. However, on February 12 and 13, the stock price plummeted with a single-day limit down.
The report from “21st Century Economic Report” suggested that the period from the limit up on January 20 to the limit down on February 12 and 13 marked a chaotic game involving “violation by the actual controller, malicious manipulation by speculative capital, and blind following by retail investors.”
As of the market close on February 13, the price of *ST Cube shares was 1.87 yuan per share, with a current market value of 1.2 billion yuan.