Lifang Digital Technology’s Severe Financial Misconduct, SZSE To Initiate Delisting Procedures In Accordance With Law

Financial Associated Press, November 28 — According To The China Securities Regulatory Commission (CSRC) Website, The CSRC Has Recently Issued A Prior Notice Of Administrative Penalties And Market Bans Against Lifang Digital Technology Co., Ltd. (Hereinafter Referred To As Lifang Digital Technology) For Suspected False Records In Periodic Financial Report Data.

Investigations Found That From 2021 To 2023, Lifang Digital Technology Inflated Revenue And Costs Through Agency Business, Financing Trade, And Fictitious Transactions, Cumulatively Overstating Revenue By RMB 638 Million And Costs By RMB 628 Million. Specifically, In 2021, Revenue And Costs Were Overstated By RMB 280 Million And RMB 277 Million Respectively; In 2022, By RMB 312 Million And RMB 305 Million Respectively; And In 2023, By RMB 46 Million And RMB 45 Million Respectively. Lifang Digital Technology’s Three Consecutive Years Of Inflated Revenue And Costs Seriously Violated Securities Laws And Regulations. The Anhui CSRC Bureau Plans To Impose A Fine Of RMB 10 Million On Lifang Digital Technology And A Total Fine Of RMB 30 Million On Ten Responsible Individuals Including Wang Yi. Lifang Digital Technology Is Suspected Of Triggering Major Violation Circumstances For Mandatory Delisting, And The Shenzhen Stock Exchange Will Initiate Delisting Procedures In Accordance With Law.

At The Same Time, The CSRC Has Decided To Formally Open An Investigation Into The Professional Conduct Of The Accounting Firm Involved In This Case, And Those Suspected Of Failing To Exercise Due Diligence Will Be Strictly Punished According To Law. For Clues That May Involve Securities Crimes Related To The Violations, The CSRC Will Adhere To The Principle Of Transferring All Cases That Should Be Transferred And Will Lawfully And In Compliance With Regulations Refer Them To Public Security Authorities.