Shanghai-listed Zhenlei Technology (688270) faces Other Risk Warning (ST) after admitting to inflating revenue in its first full year as a public company. The firm’s 2022 annual report falsely recorded RMB 8.43 million in revenue (3.47% of total) and RMB 6.72 million in profit (6.24%) through early revenue recognition by its subsidiary Hangzhou Chengxin Technology in a deal with Shenzhen Ruikai Electronics.

Regulatory action: Zhejiang CSRC fined the company RMB 2 million and four executives a total of RMB 3.2 million. Stock trading halts on April 20, resumes April 21 as ST Zhenlei under STAR Market’s 20% daily limit, with a 500,000 share cap per investor per day.

Financial turnaround: After net profit plunged to a loss in 2024, the company posted RMB 133 million net profit for 2025, a 582% surge, driven by satellite communications demand and cost controls. Zhenlei holds a >60% market share in low‑orbit satellite power management chips and supplies national projects like China Satnet and G60 Starlink.

Investor claims: Lawyers confirm eligible investors may sue for false statement losses.

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