In light of the frequent occurrence of financial fraud, this paper takes the financial fraud case of Kangmei Pharmaceutical as a research case. Drawing from relevant studies by domestic and international scholars and considering the prevalent occurrences of financial fraud at home and abroad, this paper employs case analysis and financial information comparative analysis methods. Using the actual case of Kangmei Pharmaceutical's financial fraud as an example, it summarizes the main fraudulent methods employed by Kangmei Pharmaceutical, including inflating revenue, forging accounting documents, establishing an unreasonable equity structure before financing, and fabricating profits through "related-party transactions." This paper also analyzes the motives for Kangmei Pharmaceutical's financial fraud in detail from four aspects of the GONE theory: Greed, Opportunity, Need, and Exposure. Additionally, it proposes governance measures and insights for countering financial fraud from these four perspectives. Finally, specific recommendations are presented based on the analysis results. This paper aims to provide innovative approaches and means for publicly listed companies to seek effective governance of financial fraud, regulate market operation, cultivate an ecosystem conducive to the healthy development of all parties, and protect the rights of investors in compliance with legal requirements.
