Recently, Dagong Gao Hong Network Co., Ltd. (*ST Gao Hong) released a statement announcing that they are facing the risk of being forcibly delisted due to financial fraud totaling 19.8 billion yuan (RMB).
In the announcement titled “Notice of the Implementation of Delisting Risk Warning Overlay for Company Stocks” issued on August 8th, *ST Gao Hong stated that they received a “Notice of Administrative Penalty in Advance” issued by the China Securities Regulatory Commission on August 8, 2025. The “Notice” identified that the company’s non-public offering of stocks in 2020 constituted fraudulent issuance, and their annual reports from 2015 to 2023 contained false information, which may lead to the implementation of significant violations according to the “Shenzhen Stock Exchange Listing Rules” and the possibility of being forcibly delisted.
The announcement also revealed that the company had inflated its operating income by approximately 19.8 billion yuan from 2015 to 2023.
According to information on the China Securities Regulatory Commission’s website on August 8th, administrative penalties were imposed on *ST Gao Hong for suspected illegal disclosure of information. The regulatory body proposed fines of 160 million yuan for relevant responsible parties and 7 million yuan for third parties involved in the falsification.
Reports from various media outlets such as the Southern Metropolis Daily indicated that *ST Gao Hong’s Chairman and former General Manager Fu Jinglin was fined 7.5 million yuan, while the former Chief Financial Officer, Board Secretary, and Deputy General Manager Ding Mingfeng were fined 6 million yuan. Other responsible individuals faced fines ranging from 5 million yuan to 750,000 yuan. Fu Jinglin received a 10-year ban from the securities market, and Ding Mingfeng was barred for 5 years. Additionally, Jiang Qing, the actual controller and manager of Nanjing Qingya, was found to have engaged in fraudulent trade activities in collaboration with *ST Gao Hong, leading to strict penalties and a warning alongside a fine of 7 million yuan.
According to reports from Red Star News on August 9th, in recent years, the company has been facing crises such as consecutive losses, lawsuits, and overdue debts. From 2019 to 2024, the company’s adjusted net losses accumulated to over 4.2 billion yuan in a span of 6 years.
Dagong Gao Hong Network Co., Ltd.’s official website shows that *ST Gao Hong is a high-tech enterprise initiated by the Institute of Telecommunications Science and Technology Co., Ltd. (Datang Telecommunications Group). Over more than 20 years of development, Gao Hong’s business layout has gradually focused on three main sectors: digital intelligence applications, information services, and IT sales.
As of the close of trading on Friday, *ST Gao Hong’s stock fell by 0.9% to 2.21 yuan per share, with a market value of 25.6 billion yuan.