Cube Number Science Co., Ltd. (Cube Number Science) has been involved in financial fraud for three consecutive years, falsely inflating its revenue by 638 million RMB. The company has warned investors that it may face mandatory delisting. Lawyers have stated that investors who have suffered losses due to Cube Number Science’s financial fraud can file legal claims for compensation.
On November 29, Cube Number Science issued two consecutive announcements regarding the risk of delisting.
In the “Announcement on the Risk Warning of Delisting and Suspension/Resumption of Trading of Company’s Stock,” it stated: “On November 28, 2025, the company received a ‘Pre-Penalty Notice of Administrative Penalty and Market Exclusion’ (Penalty No. [2025]8) from the Anhui Regulatory Bureau of the China Securities Regulatory Commission, which determined that the company falsely inflated operating income, operating costs through agency business, financing trading, and false trading. Based on the facts identified in the ‘Notice,’ the company’s annual reports for 2021, 2022, and 2023 contained false records. Additionally, the falsified operating income for 2021 and 2022 totaled 591,582,002.31 RMB, accounting for 50.91% of the total disclosed annual operating income for those two years.”
The announcement stated: “The company’s disclosed operating income has been falsified for two consecutive years, with the total falsified operating income exceeding 500 million RMB and representing more than 50% of the total annual operating income disclosed in those two years, constituting a significant violation leading to mandatory delisting.”
The announcement also mentioned: “The company’s stock will be suspended from trading on December 1, 2025 (Monday) and resume trading on December 2, 2025 (Tuesday). The company’s stock will be subject to a ‘Risk Warning of Delisting’ starting from December 2, 2025, with the stock abbreviation changing from ‘ST Cube’ to ‘*ST Cube.'”
In another announcement released the same day titled “Risk Warning Announcement on Potential Major Illegal Mandatory Delisting of the Company’s Stock,” it stated: “Due to suspected violations of information disclosure laws and regulations in regular reports, an investigation has been launched by the China Securities Regulatory Commission.”
According to an announcement on November 28 on the official website of the China Securities Regulatory Commission, Cube Number Science has falsely inflated its revenue by 638 million RMB and costs by 628 million RMB through agency business, financing trading, and false trading from 2021 to 2023.
The announcement mentioned: “It is proposed to impose a fine of 10 million RMB on Cube Number Science and a total fine of 30 million RMB on 10 responsible individuals including Wang Yi. Cube Number Science is suspected to have triggered significant violations leading to mandatory delisting, prompting the Shenzhen Stock Exchange to initiate delisting procedures in accordance with the law. Meanwhile, a formal investigation into the accounting firm’s practice involved in this case has been decided.”
According to reports by The Paper, Cube Number Science’s annual reports for 2021, 2022, and 2023 indicated that the accounting firm for all three years was Zhongxing Caiguanghua Accounting Firm (Special General Partnership), with the signing accountants being Fang Guoquan and Tao Xueru.
Regarding the financial fraud case of Cube Number Science, Lawyer Xu Yuehui from Guangdong Huan Yu Jing Mao Law Firm told Hua Xia Times that Cube Number Science engaged in fraud through agency business, financing trading, and false business, leading to a complete loss of authenticity and fairness in the company’s financial statements. If formal punishment is imposed, their fraudulent activities may directly trigger the provisions of significant illegal mandatory delisting in the new delisting regulations. Investors who have suffered losses due to Cube Number Science’s financial fraud can seek legal recourse.
Concerning the harm caused by financial fraud by listed companies, an industry observer told Hua Xia Times that financial fraud severely distorts the market pricing mechanism. Investors making investment decisions based on false financial information are prone to misjudgments, ultimately resulting in financial losses. Furthermore, financial fraud erodes the foundation of market integrity and is detrimental to the long-term healthy development of the market.
Public records show that Cube Number Science was established in 1999 and is located in Liuan City, Anhui Province. It is a digital technology cloud service provider focusing on new digital infrastructure. The company went public on the ChiNext board of the Shenzhen Stock Exchange in August 2012.
According to Cube Number Science’s financial reports, in the first three quarters of this year, the company achieved a revenue of 203 million RMB, a 0.44% year-on-year decrease; and a net profit attributable to shareholders of listed companies of -62.209 million RMB, a 20.59% year-on-year decrease.
As of the closing on November 28, Cube Number Science’s stock was priced at 3.36 RMB per share, a 5.62% decrease, with a total market value of 2.156 billion RMB, experiencing a 30% decline throughout the week.