*ST Mubang Suspected of Fraudulent Issuance, Restructuring May Face Uncertainty

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Produced by: Sina Listed Company Research Institute

By: Xiachong Studio

Key viewpoint: *ST Mubang (rights protection) faced regulatory penalties for severe financial fraud. Its main issues include false statements in periodic reports and private offering documents, as well as illegal fund occupation. The company is also facing multiple delisting risks, such as revenue failing to meet requirements, audit non-standard opinions, and retrospective adjustments related to financial fraud. Are there huge uncertainties about whether it can be reorganized in the future? It’s worth noting that the Sina Listed Company Research Institute is only relying on materials such as announcements, and through traditional financial analysis methods, precisely identifies the years of *ST Mubang’s financial fraud and the suspicious counterparties.

Recently, *ST Mubang was punished by regulators for severe financial fraud. Its main issues include false statements in periodic reports and private offering documents, as well as illegal fund occupation.

On July 25, 2025, *ST Mubang was filed for investigation by the CSRC for alleged violations in information disclosure. On the eve of the company’s collapse, on April 16, 2025, the Sina Listed Company Research Institute Xiachong Studio published in advance an article titled 《Can Minbang Hi-Tech Be Questioned for Financial Fraud? Suspicious Counterparties Raise Again》 to give an early warning of the risk of financial fraud allegedly involving *ST Mubang.

It’s worth noting that the Sina Listed Company Research Institute is only relying on materials such as announcements, and through traditional financial analysis methods, precisely identifies the years of *ST Mubang’s financial fraud and the suspicious counterparties.

Alleged fraudulent issuance? Sina exclusively and precisely pinpoints the years of the company’s financial fraud and the suspicious counterparties

According to the findings of the regulatory investigation, the subject of the company’s financial fraud involved inflating revenue and costs through ways such as its subsidiary Inner Mongolia Haouan fabricating polysilicon, and its subsidiary Jiangxi Jierui Mechanical & Electrical Equipment Co., Ltd. (hereinafter referred to as Jierui Mechanical & Electrical) fabricating sales of monocrystalline furnaces.

In fiscal year 2023 and the first half of 2024, it respectively inflated operating revenue by 516 million yuan and 198 million yuan, inflated operating costs by 356 million yuan and 123 million yuan, and inflated total profit by 159 million yuan and 75 million yuan. The above actions by Inner Mongolia Haouan and Jierui Mechanical & Electrical caused Minbang Hi-Tech to inflate operating revenue by 516 million yuan and 198 million yuan in 2023 and the first half of 2024, accounting for 31.17% and 45.49% of the operating revenue disclosed for the respective periods; inflated operating costs by 356 million yuan and 123 million yuan, accounting for 26.09% and 21.81% of the operating costs disclosed for the respective periods; and inflated total profit by 159 million yuan and 75 million yuan, accounting for 536.60% and 46.50% of the total profit disclosed for the respective periods. Minbang Hi-Tech’s disclosures in its 《2023 Annual Report》 and its 《2024 Semi-Annual Report》 contain false statements.

It’s worth noting that we first identified the company’s main fraud year(s) through abnormal financial data.

In the article 《Can Minbang Hi-Tech Be Questioned for Financial Fraud? Suspicious Counterparties Raise Again》, we found, using only traditional financial analysis methods, that the financial data from the years when the company’s performance surged appeared to show anomalies. By comparing the cash collection ratio over the past five years, we found that the company’s cash collection ratio in 2022 and 2023 was significantly different from previous years; it was only 35% and 51%, whereas in 2020 and 2021 this indicator was both above 100%. In the Eagle Eye early warning system model, through back-testing related data, we found that when a listed company’s cash collection ratio or net cash collection ratio has been low over the long term or is significantly different from previous years, the company’s financial report presentation risks should be treated with caution.

Source: Sina Listed Company Research Institute 《Can Minbang Hi-Tech Be Questioned for Financial Fraud? Suspicious Counterparties Raise Again》

We further tracked and found that in 2023, Nanchang City State-owned Assets Supply Chain Financial Management Co., Ltd. newly became the company’s largest supplier for its photovoltaic business. The transaction amount that year was as high as 466 million yuan, accounting for 32.28% of the transaction value. The primary transaction product was polysilicon. Based on the relevant announcements, we traced back that in December 2022, Minbang Hi-Tech’s wholly owned subsidiary Jierui Mechanical & Electrical signed a series of 《Polysilicon Purchase and Sales Contract》 and a series of 《Metal Products Purchase and Sales Contract》 with Nanchang City State-owned Assets Supply Chain Financial Management Co., Ltd. The supply chain company granted Jierui Mechanical & Electrical a 300 million yuan credit line for the purchase of goods, and Minbang’s wholly owned subsidiary Inner Mongolia Haouan Energy Technology Co., Ltd. provided joint-and-several liability guarantee for the above credit for the purchase of goods. For this transaction, in 《Can Minbang Hi-Tech Be Questioned for Financial Fraud? Suspicious Counterparties Raise Again》, we directly pointed to the reasonableness of the transaction—specifically, whether Nanchang City State-owned Assets Supply Chain Financial Management Co., Ltd. is indeed a supply chain finance company, and whether the company’s polysilicon purchase transactions with it are reasonable as well.

In fact, regulators confirmed that the above transactions were inflated. Ultimately, the above inflated figures led to false statements in *ST Mubang’s disclosed 2023 and 2024 interim reports. It’s worth noting that the company may also be suspected of fraudulent issuance. The 《Offering Circular (Registration Draft) for the Issuance of Shares to Specific Investors》 disclosed by the company in December 2023 and the 《Listing Announcement for Shares Issued to Specific Investors》 disclosed in February 2024 quoted financial data from the first half of 2023 and the first three quarters that contained false statements, so they also contain false statements.

What’s particularly ironic is that, as the sponsor for *ST Mubang’s private placement project, Guojin Securities may be diligent and responsible, or may be questionable. In the sponsor’s recommendation letter, it promised that it had sufficient reasons to believe that the issuer’s application documents and information disclosure materials contain no false statements, misleading statements, or material omissions.

Meanwhile, the company also had violations involving the occupation of funds.

In 2024, the cumulative non-operating fund transactions between *ST Mubang and Liao Zhiyuan and Zhang Zhong’an were 1.204 billion yuan, accounting for 128.98% of the company’s audited net assets for the period, constituting related-party non-operating fund occupation. However, *ST Mubang did not disclose this in the interim report or the 2024 annual report, and the company’s 2024 annual report has material omissions. Among them, Liao Zhiyuan’s non-operating fund occupation occurred in the amount of 167.6452 million yuan; the balance of occupation as of the end of 2024 was 107.1932 million yuan. These amounts accounted for 17.96% and 11.48% of the company’s audited net assets for the period, respectively. Zhang Zhong’an’s non-operating fund occupation occurred in the amount of 1.036 billion yuan; the balance of occupation as of the end of 2024 was 44.7379 million yuan. These amounts accounted for 111.02% and 4.79% of the company’s audited net assets for the period, respectively.

Reorganization or may face uncertainties

On November 18, 2025, the Intermediate People’s Court of Nanchang decided to initiate a pre-reorganization of *ST Mubang and designated the law firm Jun He (Shenzhen) to serve as the interim administrator for Minbang Hi-Tech’s pre-reorganization, specifically responsible for carrying out various tasks during the pre-reorganization period.

According to the relevant laws and regulations, combined with the company’s actual situation and the arrangements for the pre-reorganization work, the company’s first interim meeting of creditors is scheduled to be held at 9:30 a.m. on March 13, 2026. The main agenda of this meeting is to request the establishment of an interim creditors committee. No substantive reorganization plan has yet been formed. Whether the company can enter the reorganization procedure still involves major uncertainty.

It’s worth noting that the company has multiple delisting risks.

First, the company has a major delisting risk due to revenue being insufficient to reach 300 million yuan. The special statement issued by the company’s annual audit accounting firm shows that it is still unable to determine whether the company’s operating revenue, after deducting business income unrelated to its main business and income lacking commercial substance, exceeds 300 million yuan in 2025. Second, the company has a major delisting risk that the annual audit accounting firm will issue non-unqualified internal control audit opinions. If, in the 2025 annual financial statements or internal control, the audit report issued by the registered public accountant contains non-unqualified opinions, the company’s stock will be delisted by the Shanghai Stock Exchange. Third, the company’s stock has other risks of being delisted. Even if the court formally accepts the reorganization application, there will still be a risk that the company will be declared bankrupt due to reorganization failure and then undergo bankruptcy liquidation. Fourth, the company and its actual controller received an 《Notice of Prior Disclosure of Administrative Penalty》. This notice mainly involves the financial data in the company’s 2023 and 2024 semi-annual reports, and has some impact on the beginning balance of 2025.

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