Financial fraud confirmed! *ST Mubang's actual controller fined 8 million yuan, banned from the market for 6 years, and resigned from the company.

Ask AI · Has Mubon Gaoke’s Risk of Delisting Been Heightened by Increased Financial Fraud?

A report by (chinatimes.net.cn) reporter Jia Jia Li and reporter Wei Lai Li, Beijing

Recently, Jiangxi Mubon Gaoke Co., Ltd. (hereinafter referred to as *ST Mubon, 603398.SH) has undergone an important personnel change. Liao Zhiyuan resigned as the company’s director, chairman, and general manager for personal reasons. On the same day, another company announcement disclosed that the company received from the Jiangxi CSRC an “Administrative Penalty Decision” letter. The company’s actual controller and former chairman Liao Zhiyuan was given a warning and fined RMB 8 million, and was banned from the market for six years.

Regarding whether this resignation of the chairman was related to the administrative penalty, reporter from the Huaxia Times called the company’s board secretary office, but no one answered the phone.

Bai Wenxi, Chief Economist for China Enterprise Capital Alliance in China, told reporters that such “synchrony” is by no means a coincidence. It is usually a standard playbook for listed companies facing major crises. First, it is passive severance under regulatory pressure. A fine of RMB 8 million plus a six-year market ban is a severe punishment. Liao Zhiyuan has already lost the statutory qualification to continue serving as a senior officer such as director, general manager, or supervisor. Resignation is a compliance necessity, not a voluntary choice. Second, it is a key step in a shell-preservation strategy. *ST Mubon is right at the edge of delisting. With the actual controller banned from the market, if the company does not promptly cut off, it will directly trigger delisting red lines such as “funds occupied by the controlling shareholder or actual controller, or illegal guarantees.” Quickly replacing the chairman is intended to show the market that the company’s corporate governance structure can still operate normally, in an effort to preserve the last shred of hope for maintaining the shell.

Profit inflated by nearly RMB 234 million

On July 25, 2025, *ST Mubon received from the China Securities Regulatory Commission the “Filing and Investigation Notification Letter,” as the company is suspected of illegal acts such as false disclosure of financial data in annual reports and other periodic reports; the CSRC decided to file a case against the company. Because it is suspected of failing to disclose non-operating funds and related party transactions as required, on September 29, 2025, the company’s actual controller Liao Zhiyuan also received the CSRC “Filing and Investigation Notification Letter.” On February 27, 2026, the company and relevant parties received from the Jiangxi CSRC a “Preliminary Notice of Administrative Penalty.” On March 20 of the same year, the company and relevant parties again received from the Jiangxi CSRC an “Administrative Penalty Decision Letter.”

According to the investigation, Mubon Gaoke and Liao Zhiyuan mainly had two categories of illegal facts. First, Mubon Gaoke’s periodic reports and non-public issuance documents contained false records. In 2023 and the first half of 2024, through a scheme of fabricating silicon material (silicon raw material) involving its subsidiary Inner Mongolia Hao’an, and through its subsidiary Jiangxi Jierui Mechanical & Electrical Equipment Co., Ltd. (hereinafter referred to as “Jierui Mechanical & Electrical”) fabricating sales business of monocrystalline furnaces, Mubon Gaoke artificially inflated operating revenues and related figures. This led to Mubon Gaoke artificially inflating operating revenues by RMB 515,501,182.75 and RMB 198,230,088.50 in 2023 and the first half of 2024, respectively, accounting for 31.17% and 45.49% of the operating revenue disclosed for the respective periods. It also resulted in artificially inflated total profits of RMB 159,144,752.09 and RMB 74,993,354.66, respectively, accounting for 536.60% and 46.50% of the total profits disclosed for the respective periods.

Second, Mubon Gaoke failed to disclose related party transactions as required. In 2024, non-operating funds and transactions between Mubon Gaoke and its actual controller Liao Zhiyuan and other related parties, including Zhang Zhong’an, had a cumulative amount of RMB 120,388.22 million, accounting for 128.98% of the company’s audited net assets for the period. Such conduct constitutes occupation of non-operating funds by related parties. Among them, the non-operating funds occupation amount by Liao Zhiyuan was RMB 16,764.52 million, accounting for 17.96% of the company’s audited net assets for the period. As of December 31, 2024, the balance of funds occupied by Liao Zhiyuan was RMB 10,719.32 million, accounting for 11.48% of the company’s audited net assets for the period. The non-operating funds occupation amount by other related party Zhang Zhong’an was RMB 103,623.70 million, accounting for 111.02% of the company’s audited net assets for the period.

It is understood that Zhang Zhong’an was the former chairman of Inner Mongolia Hao’an. As of December 31, 2024, Zhang Zhong’an had a balance of funds occupied of RMB 4,473.79 million, accounting for 4.79% of the company’s audited net assets for the period. By the end of November 2025, the principal and interest of the funds occupied by Liao Zhiyuan and Zhang Zhong’an had been fully repaid. The occupation of non-operating funds by the above related parties was not disclosed by Mubon Gaoke in the relevant interim reports as required, nor was it disclosed in Mubon Gaoke’s 2024 annual report, resulting in a major omission in Mubon Gaoke’s “2024 Annual Report.”

Multiple senior executives were penalized

Reporters noticed that, regarding the aforementioned illegal conduct of Mubon Gaoke, Liao Zhiyuan, Zhang Zhong’an, and the then finance director of Mubon Gaoke, Tang Xiaochun, are the directly responsible supervisors. The then general manager of Inner Mongolia Hao’an, Zhang Zhonghua, and the then finance director of Inner Mongolia Hao’an, Huang Meiliang, are other directly responsible persons.

Ultimately, the Jiangxi CSRC decided that it would order Jiangxi Mubon Gaoke Co., Ltd. to make corrections, issue a warning, and impose a fine of RMB 7 million; it would issue a warning to Liao Zhiyuan and impose a fine of RMB 8 million. Among them, as the directly responsible supervisor, a fine of RMB 3.5 million was imposed. At the same time, as the actual controller, for organizing and instigating Mubon Gaoke to carry out illegal conduct of related party transactions involving non-disclosed non-operating funds occupation, a fine of RMB 4.5 million was imposed. It also issued a warning to Zhang Zhong’an and imposed a fine of RMB 3.5 million. In addition, it issued warnings to Tang Xiaochun, Zhang Zhonghua, and Huang Meiliang, and imposed fines of RMB 2 million, RMB 1 million, and RMB 1 million, respectively.

It needs to be pointed out that, given that the illegal conduct of Liao Zhiyuan and Zhang Zhong’an was relatively serious, the Jiangxi CSRC decided to take measures to ban Liao Zhiyuan and Zhang Zhong’an from the securities market for six years, respectively. Starting from the date the decision was announced, during the ban period, in addition to not being allowed to continue engaging in securities business or securities services business at the original institution, or to serve as directors, supervisors, or senior management of the original securities issuer, they also may not engage in securities business or securities services business at any other institution, nor may they serve as directors, supervisors, or senior management of any other securities issuer.

Liao Zhiyuan resigned as director, chairman, and general manager of the company for personal reasons. After the resignation, Liao Zhiyuan will no longer hold any position in the company. On March 20, 2026, the company deliberated and approved a resolution titled “Proposal to Nominate Liao Zhipeng to Perform the Duties of Chairman and General Manager,” agreeing that the company’s director Liao Zhipeng would temporarily perform the duties of chairman and general manager until the day the company’s board elects a new chairman.

According to publicly available information, Liao Zhipeng, born in 1998, served as executive director and general manager of Guangdong Meiqilin Interactive Technology Co., Ltd. from March 2022 to December 2023; and served as executive director and general manager of Jiangxi Bangbao Education Technology Co., Ltd. from December 2021 to December 2025. He has served as executive director and general manager of Jiangxi Qingdian Lüshu Technology Co., Ltd. from March 2024 to present. He has served as the company’s chairman assistant from November 2021 to present, and as an employee director from April 2025 to present. Liao Zhipeng does not hold any company shares and has a related relationship with the company’s actual controller, Mr. Liao Zhiyuan.

May be terminated from listing

Although based on the circumstances determined by the “Administrative Penalty Decision Letter” issued by the Jiangxi CSRC, the company believes that the illegal and non-compliant conduct involved does not trigger the “major illegal and mandatory delisting” situations stipulated in the Listing Rules of the Shanghai Stock Exchange.

However, on March 14, 2026, the company also issued the company’s fourth risk warning announcement regarding the possibility of being terminated from listing. It is understood that the company has a risk of delisting because, after deducting the 2024 revenue amount, it is less than RMB 300 million and the net profit is negative. The company’s stock has been subject to a delisting risk warning. At the same time, for the company’s internal control for 2024, an audit report with a negative opinion was issued, involving major deficiencies in matters such as revenue recognition, management of raised funds, and related party transactions.

In addition, if in 2025 the revenue after deductions is below RMB 300 million and the three figures—total profit, net profit before and after profit attributable non-recurring items (before and after non-recurring items)—are all negative, or if the audit report issued for the company’s 2025 financial statements or internal control is with non-unqualified opinion (not “unqualified”/non-modified), then the company’s stock will be terminated from listing after the disclosure of the 2025 annual report.

According to the company’s disclosure, the company has a major risk of delisting due to insufficient revenue of RMB 300 million. The company’s annual audit firm’s special explanation shows that: “As of the date this special explanation is issued, based on the audit procedures we have carried out and the audit evidence we have obtained, we are still unable to determine that, after deducting the revenue that is unrelated to the company’s main business and the revenue without commercial substance as stated in Mubon Gaoke’s 2025 performance forecast, the company’s revenue will exceed RMB 300 million, or that Mubon Gaoke is expected to eliminate the financial-type delisting indicators.”

The company has a major delisting risk that the company will be delisted by the Shanghai Stock Exchange due to the fact that, in the most recent fiscal year, the audited total profit, net profit, or net profit after deducting non-recurring gains and losses, whichever is lower, is negative, and the operating revenue is less than RMB 300 million.

In addition, the company has a major delisting risk because the annual audit firm issued a non-unqualified internal control audit opinion. The company’s annual audit firm’s special explanation shows that: “Mubon Gaoke’s 2024 internal control audit report was issued with a negative opinion, and the company’s stock was subject to ‘other risk warnings.’ As of the date this special explanation is issued, after preliminary review, the matters involved in the non-standard opinion have not been eliminated. If, in the future, the company cannot obtain sufficient audit evidence to prove that the relevant matters have been eliminated, it is expected that the company’s 2025 internal control will be issued with a non-unqualified opinion.” If the audit report for the company’s 2025 financial statements or internal control is issued with non-unqualified opinion by registered accountants, the company’s stock will be terminated from listing by the Shanghai Stock Exchange.

It is understood that *ST Mubon is a cross-sector photovoltaic company. Its main business includes the production and sale of monocrystalline silicon rods and silicon wafers, as well as educational/brain-training toys business. On January 31, 2026, *ST Mubon disclosed a “2025 Annual Performance Pre-Loss Announcement.” According to calculations by the finance department, the company expects that for 2025, its net profit after deducting non-recurring items will be between -RMB 7,300 million and -RMB 5,200 million, and that its operating revenue after deductions will be between RMB 3,200 million and RMB 3,800 million. The company also expects that at the end of 2025, the owners’ equity attributable to shareholders of the parent company will be between RMB 1,500 million and RMB 2,100 million.

In Bai Wenxi’s view, the delisting probability of *ST Mubon is extremely high. The company has already issued four rounds of delisting risk warnings. Even if revenue somehow meets the targets, it will be difficult to cure in the short term the “historical legacy issues” underlying the non-standard internal control opinion. After the 2025 annual report is disclosed, this company will most likely bid farewell to the A-share market.

Responsible editor: Wei Lai Li Chief editor: Yu Ning Zhang