Fujian Purple Sky Media Technology Co., Ltd. (*ST Purple Sky) issued a warning about the company facing the risk of delisting on July 21. The company announced that its stock would be suspended from trading starting on July 21, 2025. Since the beginning of this year, the stock has accumulated a 87.01% decline.
In the announcement titled “Notice of Stock Suspension and Risk Warning of Possible Delisting of the Company” on July 21, *ST Purple Sky stated that on February 14, due to false financial accounting records, the company was ordered by the Fujian Regulatory Bureau of the China Securities Regulatory Commission to rectify the situation. The company was required to correct the relevant annual reports within 30 days from the date of receiving the decision and undergo a comprehensive audit by an accounting firm. However, as of now, the company has not engaged an accounting firm with qualifications in securities and futures-related business, nor has it submitted a rectification report to the Fujian Regulatory Bureau, potentially triggering the termination of stock trading as stipulated in Article 10.4.18(3) of the Shenzhen Stock Exchange GEM Listing Rules.
The announcement also mentioned that the company’s stock had been under the risk warning of delisting since May 20, 2025, and would be halted from trading starting on July 21, 2025 (Monday). Additionally, “Within 5 trading days from the suspension of trading of the company’s stock, the SZSE will issue a preliminary notice of termination of its stock listing to the company.”
On June 27 of this year, the administrative penalty notice issued by the Fujian Regulatory Bureau of the Communist Party of China determined that *ST Purple Sky’s annual reports for 2022 and 2023 contained false records of operating income, totaling 2,499,275,347.89 yuan (RMB) in false recorded revenue, accounting for 63.53% of the total annual reported revenue for those two years.
According to the regulations of the China Securities Regulatory Commission, if a company discloses false operating income for two consecutive years, with the false amount exceeding 500 million yuan and exceeding 50% of the total annual operating income disclosed for those two years, the company may face mandatory delisting for significant violations.
As of the closing on July 18, *ST Purple Sky’s stock price was reported at 2.74 yuan per share, a decrease of 13.56%, reaching a historical low intraday with a total market value of 440 million yuan.
According to a report from the “Daily Economic News” on July 20, *ST Purple Sky’s stock resumed trading on July 7, and experienced three consecutive limit-down days since then, although a sudden 15.66% increase was recorded on July 10. However, the stock price continued to decline starting from July 11. So far this year, the stock has been in a long-term downtrend, with a cumulative decline of 87.01%.
Public information shows that *ST Purple Sky’s main business includes modern service operations and wholesale and retail businesses, specifically involving internet advertising, cloud services, and e-commerce trading.