The mainland A-share company Zhuo Jin Corporation (SHA: 688701)’s 2021 annual report fraud case continues to ferment. Due to false statements and inflated profits in the annual report, the actual controller of the company, former chairman Zhuo Weilong, was recently sentenced in the first trial to one year in prison, with a one-year suspended sentence, and fined 200,000 yuan.
According to a report by “China Fund News” on May 25th, Zhuo Jin Corporation announced on the evening of the 25th that the company received on May 22nd a “Criminal Judgment” issued by the Hangzhou Intermediate People’s Court, involving the actual controller Zhuo Weilong and former director and deputy general manager Chen Fenglian.
The judgment showed that Zhuo Weilong was found guilty of violating the disclosure of important information and was sentenced in the first trial to one year in prison with a one-year suspended sentence, and fined 200,000 yuan; Chen Fenglian was found guilty of violating the disclosure of important information and was sentenced to four months of detention with a four-month suspended sentence, and fined 20,000 yuan.
On the same day, both Zhuo Weilong and Chen Fenglian submitted their resignation reports to the company. Zhuo Weilong applied to resign as chairman, general manager, legal representative, and related committee positions under the board of directors after resignation. Chen Fenglian applied to resign from the position of director and deputy general manager, but will still serve as the director of the engineering center in the company.
According to reports from mainland media, the case originated from false statements in Zhuo Jin Corporation’s 2021 annual report. Prior announcements by Zhuo Jin Corporation indicated that the company’s 2021 annual report inflated profits by over 27 million yuan, a behavior that led to penalties for the company and individuals by the China Securities Regulatory Commission Zhejiang Regulatory Bureau in 2023.
Securities Times Network reported on May 25th that on December 16, 2025, Zhuo Jin Corporation announced that due to the investigation of suspected violations of important information disclosure, the Hangzhou police decided to release Zhuo Weilong and Chen Fenglian on bail pending trial. Nearly half a year later, the two received the first trial criminal judgment.
Public information shows that Zhuo Jin Corporation was established in 2003, headquartered in Hangzhou, Zhejiang, mainly engaged in environmental restoration and pollution control. As quoted by Securities Times Network, as of the disclosure date, Zhuo Weilong directly owned 46.7196 million shares of Zhuo Jin Corporation, accounting for 34.79% of the total share capital, and remained the controlling shareholder and actual controller of the company.
The announcement stated that the above judgment is a first-instance judgment and has not yet taken effect as of the disclosure date. If Zhuo Weilong and Chen Fenglian appeal subsequently, the final outcome of the case may still change.
On May 25th, Zhuo Jin Corporation’s stock price was reported at 10.10 yuan per share, down 4.08%, with a total market value of 1.356 billion yuan.
Epoch Times previously reported that financial fraud cases among mainland listed companies have been frequent in recent years, with some companies being accused of continuous fraud before and after listing. For example, Shenzhen Guidance Digital was forcibly delisted in early January this year due to major violations; before the case, the company was accused of seven years of continuous financial fraud. Purple Crystal Storage, which has been delisted from the Science and Technology Innovation Board, was also accused of continuous illegal behavior before and after listing. Zhuo Jin Corporation, after landing on the Science and Technology Innovation Board in 2021, had its annual report disclosed in the listing year recognized as containing false statements.