On August 20th, Shanghai Zhuoran Engineering Technology Co., Ltd. (Zhuoran Co.) announced that due to financial fraud and other issues, the company’s stock will be delisted for major violations. At the same time, the company’s stock price has fallen by over 81% over the year.
Zhuoran Co. released a notice titled “Progress of Company’s Investigation and Delisting Risk Warning”. The announcement stated, “Some of the annual financial information disclosed by the company is suspected of false recording, which may involve major violations leading to forced delisting. If the facts subsequently recognized by the China Securities Regulatory Commission (CSRC) involve the major violations leading to forced delisting as stipulated in the Listing Rules for Shanghai Stock Exchange’s Sci-Tech Innovation Board, the company’s stock will be delisted for major violations.”
The notice also mentioned that due to suspected illegal disclosure of information, “the company and the actual controller, Zhang Jinhong, are under investigation”.
According to a previous report by Radar Finance under Beijing Xuelang Technology Co., from 2021 to 2024, during the implementation of the IPO investment projects, Zhuoran Co. illicitly distributed part of the raised funds, with some funds flowing back to non-raised accounts of the company on the same or next day, while the rest went to enterprises indirectly controlled by Zhang Jinhong.
In another report on August 8th by Shanghai lawyer Wang Jinlong on Sohu News, it was revealed that the 2025 annual report postponed by Zhuoran Co. was accompanied by an audit report with an inability to express an opinion from the accountant, a negative opinion on the internal control audit report, and several independent directors unable to ensure the truthfulness of the annual report. After multiple risk exposures, the stock price continued to decline, resulting in significant investment losses as many investors bought the stocks based on the company’s past disclosures.
Lawyer Wang Jinlong stated that for significant omissions and false statements in public disclosures by a listed company, misleading investors into making trading decisions and causing losses, investors who purchased Zhuoran Co. stocks between April 29, 2022, and December 19, 2025, and still held the stocks at the closing of December 19, 2025 can file claims for compensation.
Public data shows that Shanghai Zhuoran Engineering Technology Co., Ltd. was established in July 2002 and is a large integrated service provider specializing in modular and integrated manufacturing of petrochemical equipment. In September 2021, the company was listed on the Sci-Tech Innovation Board of the Shanghai Stock Exchange.
As of the closing on August 19th, Zhuoran Co. (*ST Zhuoran) stock price was reported at 1.98 yuan per share, with a market value of 460 million yuan.
According to 21st Century Economic News, as of the closing on the 19th, Zhuoran Co.’s stock price has accumulated a decrease of over 81% over the year.