Continuous Three Years of Financial Fraud: This Company's Delisting Countdown

What management vulnerabilities did the three years of financial fraud expose at Cubic Data Technology?

Due to three consecutive years of financial fraud, which involved major illegal violations leading to mandatory delisting, Cubic Data Technology Co., Ltd. (stock abbreviation “*ST Cubic”)'s path to being listed on the A-share market is now counting down.

On the evening of March 23, *ST Cubic announced that it received a decision from the Shenzhen Stock Exchange (hereinafter “SZSE”) to terminate the company’s stock listing. According to the announcement, *ST Cubic’s stock will resume trading on March 31 and enter a delisting risk warning period, which lasts for fifteen trading days. The expected last trading day is April 21, after which the company will be delisted and its stock will be removed from the exchange.

The core reasons for *ST Cubic’s delisting are serious financial fraud and information disclosure violations—three consecutive years of financial statement falsification, with inflated revenue exceeding 590 million yuan, and over 50% of the false revenue coming from two years.

On February 14, *ST Cubic received an “Administrative Penalty Decision” issued by the Anhui Securities Regulatory Bureau. Investigations confirmed that *ST Cubic engaged in agency business, financing trade, and false trade activities to inflate operating income, operating costs, and total profit, leading to false disclosures in the 2021-2023 annual reports.

Specifically, in 2021, *ST Cubic inflated revenue by 280 million yuan, accounting for 50.09% of that year’s revenue, and inflated operating costs by 277 million yuan, accounting for 60.61% of that year’s operating costs. In 2022, revenue was inflated by 312 million yuan (51.67% of that year’s revenue), operating costs by 305 million yuan (53.54%), and total profit was inflated by 510,400 yuan (0.33% of that year’s profit). In 2023, revenue was inflated by 45.69 million yuan (24.00%), and operating costs by 45.23 million yuan (27.55%).

In 2025, the revised “Shenzhen Stock Exchange Growth Enterprise Market Listing Rules” clearly defined the red line for delisting due to major violations. Articles 10.5.2, clauses 6 and 7 specify that if a company has two consecutive years of false revenue totaling over 500 million yuan and exceeding 50%, or three consecutive years of false financial reports, it triggers mandatory delisting for major violations.

According to *ST Cubic’s announcement, the delisting process and subsequent matters have been clarified.

Regarding the delisting risk warning period, the company’s stock will resume trading on March 31 and enter the risk warning period, with the last trading day expected to be April 21. During this period, the stock will trade on the SZSE risk warning board, with no price fluctuation limits on the first trading day, and a daily limit of 20% thereafter.

After *ST Cubic’s stock is delisted, it will be transferred to the National Equities Exchange and Quotations (NEEQ) system’s delisting section for transfer and trading. The company will appoint a securities firm to handle share exit registration, re-confirmation, initial registration in the delisting section, and transfer services according to relevant regulations.

Data shows that *ST Cubic is a digital technology cloud service provider focused on new digital infrastructure, mainly engaged in intelligent hardware and software, digital intelligent services, and mobile information services.

In terms of performance, *ST Cubic expects a net loss attributable to shareholders of the listed company of 180 million to 210 million yuan in 2025, compared to a loss of 125 million yuan in 2024. The company stated that due to overall strategic adjustments, its intelligent hardware and software business and digital intelligent services will decline by over 80% year-on-year in 2025. The losses this year have increased compared to last year: on one hand, the gross profit margin of the newly added mobile information services business in early stages is low; on the other hand, the company has made impairment provisions of 82 million yuan for goodwill and intangible assets that show signs of impairment.

Notably, before trading suspension, *ST Cubic’s stock price experienced significant volatility. iFinD data from Tonghuashun shows that from January 20 to February 11—just 11 trading days—*ST Cubic’s stock price surged by 335.82%, from 0.67 yuan per share to 2.92 yuan. As of the close on February 13, the stock was trading at 1.87 yuan per share.

Source: Financial Times Client

Reporter: Yang Yi

Editor: Yang Zhiyuan