The Jiangxi Securities Regulatory Bureau has imposed administrative penalties on Fisherman Information Technology for fraudulent IPO issuance on the STAR Market. The company and seven responsible individuals, including the couple Guo Gang and Liu Guihua, were fined a total of 17.9 million yuan. Investigations found that from 2020 to the first half of 2023, Fisherman Information inflated its revenue by a cumulative 37.5885 million yuan and total profit by 14.1357 million yuan through off-book fund circulation, fictitious cryptographic product transactions with no commercial substance, and premature revenue recognition. In 2022, the inflated revenue accounted for 14.62 percent of the reported revenue for that period, and from January to June 2023, the inflated profit represented 19.38 percent of the reported profit. Additionally, Liu Guihua, one of the actual controllers, failed to disclose in the prospectus that she held 1.55 million shares on behalf of others, constituting a material omission in information disclosure. In terms of penalties, the company was fined 4 million yuan, Guo Gang and Liu Guihua were each fined 4 million yuan, and the remaining senior executives and supervisors were fined a total of 5.9 million yuan. Fisherman Information had previously applied for a STAR Market IPO in December 2022, sponsored by Western Securities, with plans to raise 334 million yuan. It voluntarily withdrew the application in June 2024, but regulators have made clear that responsibility attaches upon filing and is not extinguished by withdrawal. The sponsor Western Securities may face further accountability.
Western Securities Co LtdSponsor of fraudulent IPO may face accountability
China International Capital Corp LtdFined for fraudulent IPO and inflated financials