On the evening of September 11, the China Securities Regulatory Commission issued a notice saying it had given prior notice of administrative penalties to the listed company 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 and seriously violated 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 touching the circumstances for mandatory 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 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 criminal clues that may be involved 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 laying out integrated supporting services for green and low-carbon chemical engineering. It listed on the STAR Market of the Shanghai Stock Exchange in September 2021.
