Shanghai Jiaoda Onlly Co Ltd

ST Jiaoda Onlly was fined 8 million yuan in total along with three executives for shifting 23.5 million yuan in profits across years. After market close on September 18, ST Jiaoda Onlly announced that the company and Ji Min, Ji Lin, and Cao Yi had received an administrative penalty decision from the Shanghai bureau of the China Securities Regulatory Commission. The investigation found that the company's 2023 accounting error correction announcement contained false records, understating total profit for 2021 by 23.5 million yuan, equivalent to 213.52 percent of the total profit disclosed in the corrected 2021 annual report. In its 2024 annual report, the company reversed the 23.5 million yuan impairment loss that had been additionally provided for in the earlier period, overstating total profit by 23.5 million yuan, equivalent to 60.26 percent of the total profit disclosed in the 2024 annual report. As a result, the company was ordered to correct the violations, given a warning, and fined 4 million yuan; Ji Lin was fined 2 million yuan; and Ji Min and Cao Yi were each fined 1 million yuan. The company's shares have been subject to other risk warnings since August 4, 2026, with the stock abbreviation changed from Jiaoda Onlly to ST Jiaoda Onlly. In the first half of 2026, the company reported operating revenue of 140 million yuan, down 7.15 percent year on year, and a net loss attributable to the parent company of 13.973 million yuan, swinging from profit to loss compared with the same period a year earlier.

The China Securities Regulatory Commission recently released its accounting supervision report on annual financial reports of listed companies for 2025. It shows that 214 listed companies that disclosed annual reports on time received non-standard audit opinions, including 87 with qualified opinions and 18 with disclaimers of opinion. According to Wind data, as of August 19, more than 160 A-share listed companies had been placed under ST or asterisk ST risk warnings this year, with over 140 added since the second quarter. They include former semiconductor leader with a market value of 100 billion yuan, now known as ST Wingtech, and the veteran ChiNext company ST Huayi. The triggers were mainly financial underperformance or loss of financial credibility. For example, ST Zhongshe was flagged because total profit, net profit, and net profit excluding non-recurring items were all negative, while revenue excluding non-recurring items failed to reach the 300 million yuan threshold. ST Weiling simultaneously triggered negative net assets at period end and a disclaimer of opinion on internal control auditing. Dozens of companies such as ST Jiaoang, ST Rebecca, and ST Guangtang were placed under risk warnings for financial fraud or distorted financial data. Regulatory compliance risks were also prominent. ST Xilinmen was flagged because the controlling shareholder's non-operating fund occupation and outstanding irregular guarantees each exceeded 5 percent of net assets, and internal control received an adverse opinion. ST Jinhongshun received an additional risk warning due to an adverse internal control opinion and non-operating fund occupation of 107 million yuan by actual controller Liu Xu. Regulators are accelerating the establishment of a normalized delisting framework. In April 2026, the Shanghai, Shenzhen, and Beijing stock exchanges revised trading rules, adjusting the daily price limit for risk-warning stocks on the Shanghai and Shenzhen main boards from 5 percent to 10 percent, effective July 6. The four major mandatory delisting standards covering financial, trading, regulatory compliance, and major illegal conduct categories have been comprehensively upgraded.

Jiaoda Onlly has received an advance notice of administrative penalty from the Shanghai Securities Regulatory Bureau. The bureau plans to issue a warning and impose fines on the company and relevant responsible personnel, citing false records in the 2023 accounting error correction announcement and the 2024 annual report. The Shanghai Securities Regulatory Bureau believes the company lacked sufficient accounting basis for reversing impairment provisions related to historical bridge loan transactions between its subsidiary Onlly Microcredit and Jiuding Pawn, and is suspected of inflating its 2024 total profit by 23.5 million yuan, accounting for 60.26 percent of the total profit disclosed in that year's annual report. People familiar with the matter said Jiaoda Onlly has initiated an appeal process, arguing that the relevant accounting treatments are all based on objective grounds. The additional impairment provision in 2021 was made based on impairment indicators that existed at the time, and the reversal in 2024 was a reasonable disposal after the ownership of the funds was clarified and legal obstacles were removed. The penalty decision has not yet been formally issued, and the company's production and operations remain normal.