Zhuoyi technology’s actual controller arrested and suspected of manipulating the securities market

On the evening of 29th, Zhuoyi technology announced that Xia Chuanwu, the actual controller of the company, was arrested by Ningbo Public Security Bureau on October 28, 2020 for suspected crime of manipulating the securities market. The relevant matters need to be further investigated by the public security organ. According to Zhuoyi technology, Xia Chuanwu has resigned from the positions of general manager and chairman of the company in May 2018 and August 2018 respectively, and will not hold specific positions in the company after resignation. At present, the daily operation of the company is normal and the management is stable. Xia Chuanwu’s arrest will not affect the normal production and operation of the company. The management of the company will continue to promote various production and operation activities in accordance with the established development strategy. < / P > < p > at present, the company is planning a non-public offering of A-shares. The arrest of the actual controller will not lead to the non-public offering of shares not meeting the issuance conditions. However, the issue of non-public offering of shares still needs to be submitted to and reviewed by China Securities Regulatory Commission (CSRC). There is some uncertainty whether it can be approved. The company will continue to pay attention to the progress of the above matters, and fulfill the obligation of information disclosure in strict accordance with the provisions and requirements of relevant laws and regulations. According to the data, Zhuoyi Technology Co., Ltd. is a private enterprise, specializing in the R & D, manufacturing and sales of 3C products such as communications, computers, consumer electronics, etc. < p > < p > in early September, Zhuoyi technology received the “decision on administrative supervision measures” issued by Shenzhen Securities Regulatory Bureau, and was required to correct many problems such as imperfect corporate governance, irregular financial accounting, inaccurate information disclosure, etc. In the evening of October 13, Zhuoyi technology report was released. In view of the incorrect financial treatment of government subsidies in the non-standard financial accounting, the company said that the rectification had been completed and would continue to be standardized for a long time; for the problems of imperfect corporate governance and non-standard income and cost accounting in financial accounting, the company said that it would continue to standardize for a long time; for the problem of inaccurate information disclosure, the company said that it had completed the special training for directors and supervisors on September 24, 2020 In the future, special training on information disclosure management will be carried out irregularly according to the updated contents of laws and regulations and the actual situation of the company. On the evening of October 27, Zhuoyi technology disclosed its third quarterly report. In the third quarter, the company’s revenue was 772 million yuan, a year-on-year decrease of 8.65%; the net profit attributable to the shareholders of the listed company was -4.4761 million yuan, down 126.48%; the net cash flow from operating activities was -48.2694 million yuan, down 156.25% year-on-year. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. Investors operate accordingly and bear their own risks. < p > < p > Chinanet is a national key news website under the leadership of the Information Office of the State Council and managed by China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website releases information 24 hours a day, which is an important window for China to carry out international communication and information exchange.