On November 29, 2025, Cubic Digital Technology Co., Ltd. (referred to as Cubic Digital Technology or ST Cubic, stock code: 300344) issued an announcement regarding the receipt of a preliminary administrative penalty and market entry ban, along with a risk warning for mandatory delisting due to major violations.
The Anhui branch of the China Securities Regulatory Commission (CSRC) found that Cubic Digital Technology engaged in the following illegal activities: The company inflated its operating revenue, operating costs, and total profits through proxy businesses, financing-related trade, and fictitious transactions. This resulted in false records in its annual reports from 2021 to 2023. Specifically: - In 2021, the company overstated operating revenue by RMB 279,726,668.85 (50.09% of annual revenue) and operating costs by RMB 277,114,254.09 (60.61% of annual costs). - In 2022, it inflated operating revenue by RMB 311,855,333.46 (51.67% of annual revenue), operating costs by RMB 305,460,743.11 (53.54% of annual costs), and total profits by RMB 510,390.73 (0.33% of absolute annual profits). - In 2023, the company overstated operating revenue by RMB 45,869,361.67 (24.00% of annual revenue) and operating costs by RMB 45,227,946.58 (27.55% of annual costs).
The Anhui CSRC has proposed corrective measures, including warnings and fines for Cubic Digital Technology and its responsible personnel.
Previously, on April 29, 2025, Cubic Digital Technology disclosed receiving an official investigation notice from the CSRC and simultaneously announced corrections for prior accounting errors.
Under China’s Civil Code, Securities Law, and judicial interpretations on civil compensation for misrepresentation, companies, controlling shareholders, directors, supervisors, senior management, and intermediaries involved in securities fraud that harms investor interests are liable for civil compensation. This covers investment losses, commissions, stamp duties, and interest. Affected investors may file claims in competent courts.
Given Cubic Digital Technology’s alleged disclosure violations and the CSRC’s preliminary penalty, Shanghai Hanlian Law Firm’s attorney Song Yixin is inviting eligible investors to join a collective compensation claim. Investors who purchased Cubic Digital Technology securities between April 25, 2022, and April 28, 2025, and sold or held them after April 29, 2025, may register for compensation.
Key Notes for Investors: 1. Claim eligibility is subject to final adjustments based on the CSRC’s penalty decision and court rulings. 2. While direct lawsuits are possible without administrative penalties, attorney Song advises that such cases carry higher risks of dismissal due to limited evidence. 3. Delisting does not halt compensation lawsuits but may delay proceedings. Bankruptcy procedures (e.g., restructuring or liquidation) could further impact progress. Investors may opt in or out of class-action suits. 4. Required documents for claim registration include: (a) ID copy, (b) securities account confirmation (stamped by brokerage), and (c) complete transaction records (stamped by brokerage).
(Attorney Song Yixin, a partner at Shanghai Hanlian Law Firm since 1992, specializes in capital markets, securities, and investor rights protection. He has handled over 10,000 securities litigation cases and authored several legal publications on securities compensation.)
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