Since being placed under a delisting risk warning in July 2026, the fate of Zhuoran Corporation (stock code: 688121), a STAR Market-listed company, has reached a critical juncture. As regulatory investigations deepen, the company not only faces the risk of mandatory delisting due to operational irregularities but has also triggered the clause for mandatory delisting due to major violations, making it a rare "dual delisting" high-risk case in the A-share market.
On August 5, 2026, Zhuoran Corporation finally disclosed its 2025 annual report, which was six months overdue. However, on the same day, the company published an update on its investigation. According to the preliminary findings released by the Shanghai Bureau of the China Securities Regulatory Commission (CSRC), it has been initially determined that some of the company's annual financial information disclosed in previous years contained false records, potentially triggering the circumstances for mandatory delisting due to major violations.
Looking back, on December 19, 2025, Zhuoran Corporation and its actual controller, Zhang Jinhong, were placed under investigation by the CSRC for suspected violations of information disclosure regulations. On the same day, the Shanghai Bureau issued a warning letter pointing out several violations by the company. First, there was improper use of raised funds: between 2021 and 2024, during the implementation of its IPO fundraising projects, the company made irregular payments of some raised funds. These funds flowed into an off-balance-sheet fund pool through suppliers or channels controlled by the controlling shareholder, where they were reallocated. Part of the funds returned to the company's non-fundraising accounts, while the remainder flowed to enterprises indirectly controlled by the actual controller. Second, there was a failure to truthfully disclose related-party fund flows: the company did not accurately disclose the actual status and use of the raised funds, nor did it truthfully disclose non-operational fund flows with related parties.
The regulatory authorities have preliminarily disclosed the investigation progress, indicating that the company's annual reports contained false information. If the CSRC subsequently issues an administrative penalty and confirms that the facts meet the conditions for mandatory delisting due to major violations under the STAR Market listing rules, the company's shares will be subject to termination of listing. Lawyer Liu Peng from Shanghai Huzi Law Firm stated that, according to the Securities Law and related judicial interpretations, investors who have suffered losses due to the company's violations of information disclosure regulations have the right to file civil lawsuits for compensation. Currently, the preliminary eligibility period for claims is defined as investors who bought the shares on or before December 19, 2025, and sold them after December 20, 2025, or are still holding them at a loss. Since the suspected financial fraud may span multiple fiscal years, the final claim period will be determined by the official Administrative Penalty Decision from the CSRC and court rulings. Investors should be aware of the risk of stock price volatility while pursuing their claims. If the company ultimately delists, it will not affect the claims process.
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