On Monday (January 5th), Shenzhen’s “Guangdao Digital” was forced to delist due to significant violations. Prior to the incident, it had been falsifying financial records for seven consecutive years, with the highest revenue inflation rate reaching 99.39%. The fabrication of financial data spanned the late stage of its listing on the New Third Board, public offering review, listing transactions, and re-financing applications. Analysts believe that the listing of Guangdao Digital was not the starting point of the fraud but rather a platform to cover up lies.
On January 5th, 2026, Guangdao Digital (920680.BJ) (full name “Shenzhen Guangdao Digital Technology Co., Ltd.”) was officially delisted by the Beijing Stock Exchange for significant violations, making it the first delisted stock of the year and the first major illegal delisting case for the Beijing Stock Exchange.
According to reports from several media outlets including “First Financial” and “China Securities Journal,” Guangdao Digital’s financial fraud began in 2018, three years prior to its listing on the Beijing Stock Exchange, and continued throughout the process of listing on the New Third Board, public offering review, listing transactions, and re-financing applications. Despite the company’s disclosed financial figures showing continuous revenue growth since its listing, with reported operating income of 306 million yuan in 2023, it was once considered a high-growth target on the Beijing Stock Exchange.
On September 12, 2025, Guangdao Digital received an “Administrative Penalty Decision” from the Shenzhen Regulatory Bureau of the China Securities Regulatory Commission, determining that from 2018 to the first half of 2024, the company systematically inflated its operating income by a total of 1.465 billion yuan through fabricated purchase and sales contracts, invoices, bank receipts, shipping and warehouse receipts, with the highest annual inflation rate reaching 99.39%.
What is even more shocking is that during the annual auditing process, the company arranged for personnel to intercept inquiries sent by the accounting firm, forged responses with counterfeit official seals, and engaged in a closed-loop financial fraud scheme.
Specifically, from the first half of 2018 to the first half of 2024, Guangdao Digital inflated its operating income by 143 million yuan, 192 million yuan, 223 million yuan, 249 million yuan, 304 million yuan, 284 million yuan, and 71.644 million yuan respectively, accounting for 87.34%, 95.39%, 98.96%, 85.87%, 99.39%, 98.14%, and 88.11% of the reported amounts for each period.
It also falsely increased operating costs by 64.6526 million yuan, 85.4164 million yuan, 117 million yuan, 133 million yuan, 163 million yuan, 152 million yuan, and 38.63 million yuan respectively, accounting for 84.53%, 91.17%, 98.41%, 83.30%, 99.13%, 92.26%, and 83.81% of the reported amounts for each period.
It is worth noting that this falsification not only involved regular reports but also extended to the issuance of the “Draft of the Prospectus for the Issuance of Stocks to Specific Parties” in 2024, indicating that the fraudulent activities had reached the stage of re-financing, deceiving investors not only in the initial public offering documents but also during the company’s attempt to raise funds again.
Established in 2003, Guangdao Digital was listed on the New Third Board in November 2016 before becoming one of the first listed companies on the Beijing Stock Exchange in November 2021, primarily engaged in the development and sale of data application software. On December 3, 2024, Guangdao Digital received an inquiry letter from the China Securities Regulatory Commission, followed by a notice of case filing on December 5, indicating that the company was suspected of illegal and irregular information disclosure.
The New Third Board (National Equities Exchange and Quotations) is the third national securities trading venue approved by the State Council of the People’s Republic of China, mainly providing a platform for non-listed small and medium-sized enterprises for equity transfer and financing.
An article on “Economic Observer Net” stated that Guangdao Digital went from IPO to delisting in just four years, but the falsification had been ongoing for seven years, suggesting that the problem had already existed before the company went public. The listing was not the starting point of the fraud, but a springboard to conceal lies.
Guangdao Digital is not an isolated case. In recent years, from the Science and Technology Innovation Board to the Growth Enterprise Market and now the Beijing Stock Exchange, several cases of financial fraud have exhibited the characteristic of “fraud before listing and continuous evolution post-listing”.
On December 12, 2025, Guangdong Purple Crystal Information Storage Technology Co., Ltd. (referred to as “Zijing Storage”), which was delisted from the Science and Technology Innovation Board, announced significant progress in a lawsuit, being fined 37 million yuan for the crime of fraudulent issuance of securities with all 10 executives, including actual controller Zheng Mu and Luo Tiewei, receiving sentences, with the highest term being seven years and six months.
According to the administrative penalty decision issued by the China Securities Regulatory Commission in April 2023, Zijing Storage continued to engage in illegal activities before and after its listing, with the fraudulent issuance tracing back to the IPO application stage. Between 2017 and the first half of 2019, the company accumulated an inflated operating income of 222 million yuan through fictitious sales contracts, falsified logistics and acceptance documents, fund return arrangements, with the profit inflation in the first half of 2019 accounting for 137.33% of the total profits, constituting substantial false statements.
On the evening of September 19, 2025, Cisco Ray (688053.SH) announced that it had received a “pre-notification of administrative penalty notice” from the Sichuan Securities Regulatory Bureau, and starting from September 23, the company’s stock would be changed to “ST Cisco Ray” due to suspected financial fraud. In 2022, the company falsely increased its revenue by nearly tens of millions and inflated the total profit by over 7 million yuan.