The chip maker fabricated its results by forging transactions, confirming its earnings in advance, and reporting lower costs for the period, the exchange said on Tuesday, adding that the actions were “obviously subjective and intentional,” and in clear violation of the country’s securities law.
The stock exchange said it will not review the company’s IPO documents in the next five years, and deemed its executives unfit for appointment in similar roles in the next three years.
In August 2021, S2C applied for an IPO on Shanghai’s Nasdaq-style Star market. The application was withdrawn in July 2022, after the China Securities Regulatory Commission (CSRC) led a probe into the company and found that it may have falsified financial results.
S2C’s ban is the first since China’s securities watchdog rolled out the registration-based IPO system to all mainland stock exchanges in February 2023 in a bid to encourage new listings and…
