A flurry of regulatory actions targeted at least seven listed companies overnight on May 29th.

The most prominent case involves Hongxiang Co., Ltd. (Sensata Technologies Holding), which had previously been fined a total of 65.56 million yuan by the China Securities Regulatory Commission (CSRC) for falsifying annual reports for six consecutive years and fraudulent issuance. On the evening of May 29th, the company's actual controller was referred to prosecutors by public security authorities for review and potential indictment on charges of fraudulent issuance and information disclosure violations.

Another significant development was the receipt of delisting decisions from the stock exchange by three companies: *ST Chuangxing, *ST Huke, and *ST Taihe.

Simultaneously, Heizhima (Black Sesame), which was placed under investigation by the CSRC on April 24th this year, received a pre-penalty notice on May 29th, proposing combined fines of 8.7 million yuan for the company and key individuals involved.

Furthermore, two other listed companies, *ST Tianyi and Dingjide, were placed under investigation for suspected violations of information disclosure regulations.

**Hongxiang Co., Ltd. (Sensata Technologies Holding) (Sensata Technologies Holding N.V.)**

Among the companies singled out on the evening of May 29th, Hongxiang faces the most severe situation. The case concerning its fraudulent securities issuance and the alleged violations of important information disclosure and fraudulent securities issuance by its actual controller have been formally transferred by public security authorities to the Xiamen People's Procuratorate for review and prosecution.

Reviewing the complete timeline, this represents a typical case of "administrative-to-criminal" linkage in recent capital market enforcement. On May 11, 2023, Hongxiang was placed under investigation by the CSRC for suspected information disclosure violations. On February 27, 2024, the Xiamen Securities Regulatory Bureau issued a pre-penalty notice, systematically disclosing the illegal facts for the first time: the company's annual reports from 2017 to 2022 contained false records, involving fabricated sales, fictitious raw material procurement, and inflated fixed assets, cumulatively inflating revenue by approximately 1.001 billion yuan over six years, with inflated profits accounting for up to nearly 48% of the disclosed amount in the worst year. More egregiously, during this period of falsification, the company completed a private placement in 2019 and a public offering of convertible bonds in 2020 (raising 585 million yuan), using false financial data in its application documents, constituting fraudulent issuance.

In April 2024, the Xiamen Securities Regulatory Bureau imposed a fine of 25.13 million yuan on Hongxiang. The actual controller and then-chairman/general manager were given a warning, fined 22.88 million yuan, and subjected to a lifetime market entry ban.

However, administrative penalties were not the end. On May 29, 2026, a "Notice of Transfer for Prosecution" issued by the Xiamen Public Security Bureau stated that "the criminal facts are clear, the evidence is reliable and sufficient, and the case is now transferred to the Xiamen People's Procuratorate for review and prosecution." The chain from administrative investigation in May 2023 to criminal referral in May 2026 is now complete.

**Three *ST Companies Face Delisting**

Also on the evening of May 29th, *ST Chuangxing, *ST Huke, and *ST Taihe each announced receiving a "Decision on Stock Termination of Listing" from the Shanghai Stock Exchange, finalizing their delisting.

In terms of delisting types, all three companies face mandatory delisting due to financial criteria, but the specific triggers differ. *ST Chuangxing failed due to a "non-standard audit opinion" – its 2025 financial report and internal controls received a disclaimer of opinion from auditors, who noted multiple issues with its revenue, directly triggering delisting conditions. A deeper investigation reveals long-standing problems with the timing of revenue and cost recognition for project contracts, leading to false records in its annual reports from 2021 to 2024.

*ST Huke failed due to its "hollowed-out main business" – its 2025 operating revenue was only 8.4354 million yuan, with a net loss after non-recurring items of 2.26 million yuan. Its revenue scale has shrunk to less than one-thirtieth of the 300 million yuan threshold under the new delisting rules. As a company listed on the Shanghai Stock Exchange as early as 1992, *ST Huke's main business is bulk commodity trade, with revenue stagnating at low levels for years and profits consistently teetering on the edge of profitability.

*ST Taihe's delisting is more dramatic. Its 2025 revenue was originally forecast to be between 380 million and 400 million yuan, but after audit adjustments, it was reduced to only 155 million yuan. Auditors questioned the authenticity and commercial substance of newly added engineering business, leading to significant revenue reductions. Coupled with a negative opinion on internal controls and 18.7 million yuan in non-operational fund occupation by related parties, delisting became inevitable.

Zooming out, the simultaneous exit of these three companies is not an isolated event. As of May 30th, 22 A-share companies have been delisted or are set for delisting this year. Among them, 13 are due to financial criteria, 4 due to major violations, 3 due to trading criteria, and 2 due to voluntary withdrawal.

**Heizhima Receives Fine; *ST Tianyi and Dingjide Placed Under Investigation**

In the regulatory actions of May 29th, the pre-penalty notice for Heizhima and the simultaneous investigations into *ST Tianyi and Dingjide demonstrate a "zero-tolerance" regulatory stance towards information disclosure violations at different stages.

The Heizhima case exemplifies "regulatory efficiency." The company and its former actual controller were placed under investigation by the CSRC on April 24, 2026; just over a month later, the Guangxi Securities Regulatory Bureau issued the "Pre-penalty Notice." The investigation found two illegal acts: in 2023, funds were transferred out through subsidiaries by prepaying third-party accounts, resulting in cumulative non-operational occupation by related parties of 186 million yuan, which was not disclosed in a timely manner; and these matters were completely omitted from the 2023 annual report, constituting a major omission.

The proposed penalties are: a warning and a fine of 1.8 million yuan for the company; a warning and a fine of 5 million yuan for the actual controller and then-chairman, setting a recent record for penalties against an actual controller in Guangxi; and combined fines of approximately 1.9 million yuan for other responsible individuals, totaling about 8.7 million yuan for the case.

Notably, Heizhima's fund occupation issue is not a first offense – the Guangxi bureau issued a warning letter for similar problems as early as 2019, with recurrences in subsequent years. Although the related parties have repaid all the principal, the illegal nature of "concealment and non-disclosure" does not disappear with repayment.

Unlike Heizhima, which is at the preliminary penalty stage, the investigation into Dingjide points to a typical case of "funds repaid, but information disclosure violations still require accountability." On May 29th, Dingjide and its actual controller received "Investigation Notices" from the CSRC and were placed under simultaneous investigation for suspected information disclosure violations. According to previous exchange inquiries and company replies, a Dingjide subsidiary transferred approximately 305 million yuan to nine trading companies under the guise of paying for goods, with about 201 million yuan ultimately flowing to entities controlled by the actual controller and related parties. However, the关联关系 and实质 of these fund flows involving these trading companies were not truthfully disclosed in previous announcements. Although the occupied funds were "fully repaid" before the annual report disclosure, historical flaws in information disclosure still triggered the CSRC's investigation.

The investigation into *ST Tianyi follows a typical path of "non-standard audit opinion → regulatory warning → investigation." Its May 29th announcement stated it was under investigation for suspected information disclosure violations. Although the announcement did not specify the exact violations, its trajectory over the past two years is telling: the actual controller and chairman was placed under residential surveillance by supervisory authorities in March 2024, raising market focus on whether this重大事项 was disclosed timely; frequent breaches in managing raised funds, with some专用 accounts强制划扣 due to litigation; and its 2025 annual report receiving a disclaimer of opinion from auditors and a negative opinion on internal controls, directly leading to the imposition of delisting risk warnings. Listed on the STAR Market in 2019 as a champion of domestic substitution for high-speed rail brake pads, the company aggressively diversified into photovoltaics at the peak of the cycle. Following the industry's collapse, it lost over 3 billion yuan in net assets within two years and is now pinning its hopes on pre-restructuring.