The China Securities Regulatory Commission said on the evening of September 11 that it has issued a prior notice of administrative penalty to Shanghai Zhuoran Engineering Technology Co., Ltd., known as ST Zhuoran, over suspected false records in financial data including periodic reports. After investigation, ST Zhuoran inflated profits in relevant years, seriously violating securities laws and regulations. The CSRC plans to fine the listed company 12.5 million yuan, impose combined fines of 35.8 million yuan on six responsible persons, and ban the actual controller from the securities market for 10 years. ST Zhuoran is suspected of meeting the conditions for forced delisting due to major violations, and the Shanghai Stock Exchange will initiate delisting procedures in accordance with the law. At the same time, the CSRC has decided to formally open an investigation into the practice conduct of the accounting firm involved in this case. Those suspected of failing to perform their duties diligently will be severely punished according to law, and any possible criminal clues will be transferred to public security authorities in strict accordance with relevant regulations. Public information shows that ST Zhuoran mainly engages in modular and integrated manufacturing of large refining and chemical special equipment, while also providing integrated supporting services for green and low-carbon chemical projects. It listed on the STAR Market of the Shanghai Stock Exchange in September 2021.
Shanghai Supezet Engineering Technology Corp LtdCSRC fines ST Zhuoran 12.5M yuan for financial fraud and forces delisting, a regulatory enforcement action against the company.
