This study focuses on analysing financial ratios to identify the company’s (ABC Group) problems and the means by which financial fraud was committed. It proposes recommendations and solutions for the corporate governance of IPO enterprises in China’s Growth Enterprise Market. This study finds that imperfect corporate governance led to financial fraud being committed by ABC Group. Many other IPO enterprises in the Growth Enterprise Market suffer from the same corporate governance flaws as ABC Group, including an over concentrated ownership structure, ineffective board of directors and supervisors, lack of management morality and other internal governance issues, external governance issues such as imperfect capital market system, insufficient supervision, and lack of independence of intermediary agencies. Results indicate that enterprises should optimize their equity structure, improve the relevant mechanisms of the board of directors and supervisors, and increase the moral constraints on management.