The chip company is blatantly committing fraud!

According to news on January 31, Zuojiang Technology, a company that once claimed that its self-developed chips could compete with NVIDIA, collapsed overnight, and the company’s stock price also dropped by the limit today!

According to official reports, the financial information disclosed by Zuojiang Technology in 2023 was seriously untrue and suspected of major financial fraud. In addition to fraud, Zuojiang Technology’s previously announced investment of more than one billion yuan in project land is overgrown with weeds, and there is no sign of construction yet.

Since 2021, Zuojiang Technology has continued to disclose the research and development of “programmable network data processing chips”. Zuojiang Technology's entry into DPU chips has provided great imagination for the stock price. It also claims that its self-developed DPU can benchmark against Nvidia.

As a well-known monster stock in the A-share market, Zuojiang Technology once surged by more than 800% in more than a year . However, after the truth about its chip business was exposed in December 2023, it fell by about 85% in just 9 trading days. .

According to the content of Zuojiang Technology’s previous reply to the Shenzhen Stock Exchange’s inquiry letter, in the first three quarters of 2023, its DPU chip sales revenue was only one, and accountants said that whether relevant sales can be recognized in 2023 requires further judgment. The announcement shows that Zuojiang Technology confirmed in January 2023 that the contract content was the revenue from DPU chips, with an amount of 12.61 million yuan, and the buyer was Beijing Haotian Xuhui Technology Co., Ltd. However, Haotian Xuhui is only a trading distributor, and the actual end user is Beijing Juxian Technology Trading Co., Ltd. The announcement also stated that of the 400 NE6000 chips purchased by Juxian Technology, so far, 370 of them are stored in the warehouse, 20 are marketed by sales staff, and the remaining 10 are used for research and development.

On the afternoon of January 30, 2024, the China Securities Regulatory Commission issued a notice stating that it has been preliminarily found that the financial information disclosed by Zuojiang Technology in 2023 was seriously untrue and suspected of major financial fraud. The case is currently under investigation and the illegal facts will be ascertained as soon as possible and dealt with seriously in accordance with the law.

The China Securities Regulatory Commission also stated that it will always take protecting the legitimate rights and interests of investors, especially small and medium-sized investors, as the starting point and goal of all work. Listed companies' financial fraud seriously misleads small and medium-sized investors in their trading decisions and must be severely cracked down. The China Securities Regulatory Commission will continue to maintain a "zero-tolerance" high-pressure law enforcement posture, strictly investigate and deal with all types of fraud, and strengthen administrative, civil and criminal three-dimensional accountability. Strictly implement the delisting system, so that those who make counterfeit goods and "keep their shells" "should retreat", and make those who make counterfeit goods and disrupt the market pay a heavy price.

According to public information, Zuojiang Technology’s full name is Beijing Zuojiang Technology Co., Ltd. It was established in 2007 and listed on the GEM in October 2019. The sponsor is CITIC Securities. The company is mainly engaged in the design, development, production and sales of software and hardware platforms, boards and chips related to the field of information security.