Investors who suffered losses may be eligible to seek compensation from the company through legal channels following its delisting. The company, Zitian Technology, was officially delisted on October 14, 2025. This action followed an investigation by the China Securities Regulatory Commission (CSRC) into severe violations, including financial fraud, refusal to cooperate with regulators, and failure to disclose financial reports on schedule. The CSRC has now issued its final administrative penalty decision, and the company along with its responsible individuals will face legal consequences.
Investors who incurred losses due to the company's information disclosure violations can now register for potential compensation claims. The eligibility criteria are based on specific trading periods. Investors who meet either of the following conditions may participate: (1) those who purchased shares between January 31, 2024, and April 30, 2024, and sold or continued to hold them after May 1, 2024, incurring a loss; or (2) those who purchased shares between April 28, 2023, and October 27, 2024, and sold or continued to hold them after October 28, 2024, incurring a loss.
According to regulatory findings, the company significantly inflated its operating revenue by a cumulative 24.99 billion yuan between 2022 and 2023 through various fraudulent methods.
Firstly, the company fabricated revenue of 273 million yuan by creating fictitious SMS delivery service businesses and forging corresponding acceptance documents. This act of inventing business transactions was deemed particularly egregious.
Secondly, in 2023, a subsidiary of the company improperly recognized revenue using the "gross method" in an online advertising fee recharge business, despite not obtaining control of the goods. This practice led to inflated revenue of 17.21 billion yuan, which accounted for a staggering 78.63% of the total revenue disclosed for that period.
Furthermore, the company's 2023 interim report contained false entries. It prematurely recognized revenue from cloud service businesses that had not commenced operations, were not accepted by clients, and for which no payments had been received. This systematic and continuous pattern of fraudulent behavior severely misled investor judgment.
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