Following the market close on September 18, Kunwu Jiuding Investment Holdings Co., Ltd. (SH: 600053, formerly known as Jiuding Investment) disclosed that it had received a formal case filing notice from the China Securities Regulatory Commission (CSRC) on the same day. The regulatory body has initiated an investigation into the company over suspected violations of information disclosure rules, specifically citing inaccurate accounting treatment of inventory and investment properties for the fiscal years 2023 through 2024. This action falls under the framework of the Securities Law of the People's Republic of China and the Administrative Penalties Law.
The company has stated that all its operational activities are proceeding normally and that it will fully cooperate with the CSRC's investigation while strictly adhering to information disclosure obligations. This development follows a proactive restatement the company had previously made, highlighting the seriousness of the accounting discrepancies now under official scrutiny.
On April 29, 2026, the company had already issued a special explanation regarding prior-period accounting error corrections. This involved retroactive adjustments to its financial statements for both 2023 and 2024, which in turn triggered corresponding adjustments to the first-quarter, half-year, and third-quarter reports of 2025 due to changes in opening balances.
The identified errors were concentrated in two main asset categories. First, regarding inventory, it was determined that certain stock related to the "Zijincheng" project had shown signs of impairment at the end of 2023 but sufficient provisions had not been made. As a result, an additional inventory write-down of 169 million yuan was booked for fiscal 2023, while the provision previously recorded for 2024 was reduced by 177 million yuan. Second, regarding investment properties, the company added a fair value loss of 8 million yuan for 2023 and correspondingly decreased the fair value loss for 2024 by 1 million yuan.
These retroactive adjustments brought about a pivotal change in the company's profitability picture. The net profit attributable to shareholders for 2023 was reversed from a previously reported profit of 15.35 million yuan to a loss of approximately 118 million yuan. Conversely, the net loss for fiscal 2024 was narrowed from 268 million yuan to approximately 135 million yuan after the corrections.
Public records indicate that Kunwu Jiuding Investment Holdings has its roots as Jiangxi Paper Industry Co., Ltd., having been listed via a public offering in 1997 with approval from the securities regulator. The company is registered in Nanchang, Jiangxi Province, with its headquarters in Beijing. As of the end of 2025, its registered capital stood at 434 million yuan, with controlling shareholder Zhongjiang Group holding a 29.8% stake and actual controllers including Wu Gang, Huang Xiaojie, Wu Qiang, Cai Lei, and Qin Zhengyu.
The company's traditional operations span private equity investment management, real estate development, and construction. In recent years, it has been pivoting towards technology manufacturing and investment businesses, with a focus on core components for humanoid robots, aiming to cultivate a second growth curve. Its private equity arm operates through its wholly-owned subsidiary, Kunwu Jiuding Investment Management.
Financially, the company has faced considerable pressure. It generated revenues of approximately 338 million yuan in 2024, up 20.34% year-on-year, yet still posted a net loss attributable to shareholders of about 135 million yuan. For the full year of 2025, it recorded a net loss of 358 million yuan, or 324 million yuan after deducting non-recurring items, on revenues of 281 million yuan. In the first half of 2026, revenues fell 25.48% year-on-year to 59.89 million yuan, with a net loss attributable to shareholders of 88.15 million yuan.
Given that the audited net profit for fiscal 2025 was negative and revenues after excluding non-business-related and non-substantive income fell below the 300 million yuan threshold, the company triggered the delisting risk warning conditions under the stock listing rules. Consequently, its shares have been under a delisting risk warning since April 30, 2026, with the stock name changed from "Jiuding Investment" to "*ST Jiuding" and a daily price fluctuation limit of 5%. The company explained this status mainly stems from its annual auditor adjusting revenue recognition for certain construction projects to the net method, which pushed reported revenue below the critical 300 million yuan line.
This is not the first regulatory issue for the company this year. On June 3, 2026, the Shanghai Stock Exchange imposed disciplinary actions, publicly condemning both the company and several former executives, including then-chairman Wang Liang, then-general manager Wang Xin, and then-CFO and board secretary Yi Lingjie. The exchange found that when the company disclosed its 2025 performance pre-announcement on January 31, 2026, it projected annual revenues between 320 million and 350 million yuan. However, in a correction notice dated April 27, revenues were revised down to between 270 million and 290 million yuan, with the adjustment coming just two trading days before the annual report release. The exchange noted that with negative net profit, whether revenue falls below 300 million yuan directly determines if delisting risk warnings apply, and criticized the company for inaccurate performance forecast disclosure and failure to adequately warn the market of such risks.
Looking at the broader picture, the Jiuding group's regulatory track record is more complicated. In January 2021, indirectly controlled parent company Tongchuang Jiuding Investment Management Group was penalized for securities law violations, with the CSRC confiscating 501 million yuan in illegal gains and imposing a fine of 100 million yuan, totaling approximately 600 million yuan. Several executives including Wu Gang were also punished at that time. In February 2023, Wu Gang faced further sanctions for interfering in fund operations, specifically instructing Jiutai Fund to purchase shares of "Sanweisi" through a segregated account and directing the liquidation of that product. He was ordered to rectify the issues, fined 1 million yuan, and banned from the securities market for five years. Notably, those prior penalties targeted the parent group and Wu Gang personally rather than the listed entity itself.
On the trading front, shares of *ST Jiuding closed at 7.12 yuan on September 18, up 1.57%, giving the company a total market capitalization of approximately 3.09 billion yuan.