Investors who suffered losses can register their claims on the Sina Investor Rights Protection Platform: http://wq.finance.sina.com.cn/. Follow @Sina Securities, search for Sina Investor Rights Protection on Baidu, or visit the Sina Finance app or homepage to find us.
1. Penalty for Revenue Inflation The Cisco claims case, represented by lawyer Liu Peng from Shanghai Huzi Law Firm, has been partially filed in court. On October 24, Cisco disclosed an announcement stating it received the "Administrative Penalty Decision" from regulators.
According to the investigation by the China Securities Regulatory Commission (CSRC), Cisco's 2022 annual report contained false records, inflating revenue by 9.9604 million yuan and gross profit by 7.0054 million yuan, accounting for 4.16% and 6.56% of the company's total revenue and profit for the same period, respectively.
Based on the official penalty, investors who purchased Cisco shares between April 10, 2023, and January 17, 2025 (inclusive) and sold or held them after January 18, 2025, resulting in losses, are eligible to file claims. Before participating, investors should prepare relevant transaction records, such as trade confirmations and account statements, for the legal team to verify eligibility.
2. Issues in Multiple Financial Reports Financial fraud has long been a persistent issue in capital markets, severely harming investor interests and undermining market fairness and transparency.
Regulators found the following violations: - **Fabricated Sales**: In December 2022, Cisco fabricated a 3.3665 million yuan testing service transaction with Sichuan Saidi Information Technology Co., generating a statement and stamping it with the counterparty's seal without actual goods or testing. - **Premature Revenue Recognition**: In September 2022, Cisco recognized revenue of 2.4693 million yuan and gross profit of 2.037 million yuan without delivering goods or obtaining confirmation from Jiayuan Technology. - **Improper Revenue Recognition**: Cisco signed two disputed contracts worth 4.1246 million yuan with Jiayuan Technology in September 2022. Despite knowing the disputes, Cisco still recognized the revenue, inflating sales and profits.
(Note: This article is provided by lawyer Liu Peng from Shanghai Huzi Law Firm and does not represent the views of Sina Finance. Liu Peng, with 19 years of experience in securities litigation, has successfully represented investors in over 300 listed companies, including ZQB, GHWA, and Jinjia Holdings, with a 99.2% success rate. His expertise ensures efficient claim strategies and maximizes investor compensation.)
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