Zhejiang Century Huatong seeks removal of 'other risk warning' status

Zhejiang Century Huatong Group Co., Ltd. announced its application to the Shenzhen Stock Exchange to remove the "other risk warning" status on its shares, effective November 7, 2025. This follows the company's receipt of an administrative penalty decision from the China Securities Regulatory Commission (CSRC) on November 6, 2024, regarding false financial records in its 2018-2022 annual reports. The company's shares were placed under "other risk warning" on November 8, 2024.

The company has since undertaken corrective measures, including restating financial reports for 2018-2022 and adjusting subsequent reports for 2023 and the third quarter of 2024. These actions, approved by the board on April 28, 2025, address the issues identified in the CSRC's decision.

The board meeting held on November 7, 2025, unanimously approved the application. However, the removal of the risk warning is subject to Shenzhen Stock Exchange approval, and investors are cautioned about potential uncertainties. The company also disclosed 80 investor compensation lawsuits totaling approximately RMB 73,158,500, with provisions for estimated liabilities already made.