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Three A-Share Firms Under CSRC Investigation for Information Disclosure Violations
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On September 18, three A-share companies—Kangzhi Pharmaceutical, China Railway Assembly, and *ST Jiuding—announced that the China Securities Regulatory Commission (CSRC) has opened formal investigations into them on suspicion of violations regarding information disclosure. Additionally, one unnamed company and its relevant responsible persons received administrative penalty decisions. Kangzhi Pharmaceutical reported a 37.67% drop in first-half 2026 revenue to RMB 145 million and a net loss of RMB 32.77 million, narrowing from the prior year. The company stated the investigation may involve pre-change-of-control business activities, which it has since ceased. China Railway Assembly posted a 1.28% revenue increase to RMB 882 million but an expanded net loss of RMB 48.67 million. *ST Jiuding saw revenue fall 25.48% to RMB 59.89 million and an expanded net loss of RMB 88.15 million. *ST Jiuding said it does not meet mandatory delisting criteria and has accrued fines in its semi-annual report. Separately, San Te Cableway reported a 1.60% revenue decline to RMB 288 million and a 20.22% drop in net profit to RMB 53.89 million, though it was not placed under investigation.
Source report
On the evening of September 18, three A-share companies separately announced that the China Securities Regulatory Commission (CSRC) had decided to open formal investigations into them on suspicion of violations related to information disclosure. Additionally, one company and its relevant responsible persons received administrative penalty decisions.
Kangzhi Pharmaceutical
Financial Performance (First Half of 2026)
- Operating revenue: RMB 145 million, down 37.67% year-on-year
- Net profit attributable to parent company shareholders: Loss of RMB 32.7665 million (narrowed loss compared to the same period last year)
Stock Data (September 18)
- Closing price: RMB 6.27 per share
- Total market capitalization: RMB 2.854 billion
Company Statement
Following a self-inspection, the company determined that the investigation may involve business activities conducted prior to a change in its actual controller. After the change, the company ceased such activities in accordance with relevant regulations. The company has not yet received the CSRC's final investigation conclusion; the ultimate outcome will be subject to the conclusions issued by the CSRC.
The company stated that after the change in actual controller, it strictly adhered to regulatory requirements and implemented comprehensive reforms in corporate governance, internal control systems, and organizational structure. It continues to insist on lawful and compliant operations and promote standardized governance. All production and business activities are proceeding normally, and the aforementioned matters will not have a material impact on normal operations. During the formal investigation, the company will actively cooperate with the CSRC and strictly fulfill its information disclosure obligations.
China Railway Assembly
Financial Performance (First Half of 2026)
- Operating revenue: RMB 882 million, up 1.28% year-on-year
- Net profit attributable to listed company shareholders: Loss of RMB 48.6652 million (expanded loss compared to the same period last year)
Stock Data (September 18)
- Closing price: RMB 10.7 per share
- Total market capitalization: RMB 2.631 billion
*ST Jiuding
Financial Performance (First Half of 2026)
- Operating revenue: RMB 59.8901 million, down 25.48% year-on-year
- Net profit attributable to listed company shareholders: Loss of RMB 88.1507 million (expanded loss compared to the same period last year)
Stock Data (September 18)
- Closing price: RMB 7.12 per share
- Total market capitalization: RMB 3.087 billion
Company Statement
The company stated that as of the date of the announcement, its production and business activities remain normal, and the aforementioned matters will not have a material impact on its operations. The company does not meet the criteria for mandatory delisting due to major violations, nor does it trigger other risk warning conditions. After receiving the "Advance Notice of Administrative Penalty," the company accrued expenses for the fines imposed, and the impact of this matter has been reflected in its 2026 semi-annual report.
San Te Cableway
Financial Performance (First Half of 2026)
- Operating revenue: RMB 288 million, down 1.60% year-on-year
- Net profit attributable to parent company shareholders: RMB 53.8875 million, down 20.22% year-on-year
Stock Data (September 18)
- Closing price: RMB 13.2 per share
- Total market capitalization: RMB 2.34 billion
Source: China Securities Journal
Source
东方财富网-证券聚焦Eastern
Part of this Story
CSRC probes *ST Jiuding and Kangzhi Pharmaceutical for suspected information disclosure violations