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cailianshe reported on september 3 that *st furun, whose share price has doubled in the past month, announced that it would suspend trading for inspection.

this evening, *st furun issued an announcement stating that the company's stock has been trading up for 18 trading days from august 2, 2024 to september 3, 2024, with a stock price increase of 100.89%, which is highly volatile. in order to protect the interests of investors, the company will verify the stock trading situation. upon application, the company's stock will be suspended from the opening of the market on september 4, 2024, and will resume trading after the disclosure of the verification announcement. the suspension is expected to last no more than 3 trading days. the company reminds investors to pay attention to the risks of secondary market transactions.

in terms of information disclosure, the announcement shows that after self-examination by the company's board of directors and confirmation by letter to the controlling shareholder and actual controller, except for matters that have been disclosed, the company, the controlling shareholder and the actual controller have no planning of any material information that should be disclosed but has not been disclosed involving the company.

in addition, *st furun particularly emphasized the six major risks faced by the company's stocks in the announcement and reminded investors to pay attention to investment risks, including the risk that the company's stocks have been subject to delisting risk warnings and other risk warnings have been implemented, and the risk that the company's stocks may be delisted.

(i) the company's stock has been issued a delisting risk warning and other risk warnings have been issued

1. relevant circumstances of the company's stocks being issued a delisting risk warning

(1) the company's audited operating income for 2023 was rmb93,231,700. the company's operating income for 2023 after deducting business income not related to the principal business and income without commercial substance was rmb72,897,700. the net profit attributable to the shareholders of the listed company after deducting extraordinary gains and losses was rmb-514,252,000, which triggered the provisions of article 9.3.2, paragraph 1, item (a) of the shanghai stock exchange listing rules (revised in august 2023).

(2) asia pacific (group) certified public accountants (special general partnership) issued a 2023 audit report with no opinion on the company, which violated the provisions of article 9.3.2, paragraph 1, item (3) of the shanghai stock exchange listing rules (revised in august 2023). in summary, the company was issued a delisting risk warning from april 30, 2024.

2. relevant situations of the implementation of other risk warnings on the company's stocks

(1) asia pacific (group) certified public accountants llp issued a negative opinion on the 2023 internal control audit report. according to article 9.8.1, paragraph 1, item (3) of the shanghai stock exchange listing rules (revised in august 2023), the company's shares will continue to be subject to other risk warnings.

(2) on may 17, 2024, the company received the administrative penalty decision (no. [2024] 18, no. [2024] 19, no. [2024] 20) issued by the zhejiang regulatory bureau of the china securities regulatory commission. from the date of receipt of the penalty decision, the company's stocks will be subject to additional risk warnings. investors are advised to pay attention to investment risks!

(ii) risk warning of possible delisting of the company’s stocks

according to the "2024 semi-annual report" disclosed by the company, the net profit attributable to shareholders of the listed company before and after deducting non-recurring items in the first half of 2024 is negative. if the lower of the company's audited total profit, net profit or net profit after deducting non-recurring gains and losses in 2024 is negative and the operating income is less than 300 million yuan, according to the relevant provisions of the "shanghai stock exchange listing rules" (revised in april 2024), the company's stock will be delisted after the disclosure of the 2024 annual report. investors are kindly requested to invest rationally and pay attention to investment risks!

(iii) the company has received the risk warning of the administrative penalty decision

on may 17, 2024, the company received the administrative penalty decision (no. [2024] 18, no. [2024] 19, no. [2024] 20) issued by the zhejiang regulatory bureau of the china securities regulatory commission. if the company is subsequently sued for securities misrepresentation, the company will fully accrue estimated liabilities for investor claims, disclose the progress of related matters in a timely manner, and warn of risks.

(iv) risk warning of significant uncertainties in the transfer of shares by controlling shareholders

on august 17, 2021, furun holding group co., ltd. (hereinafter referred to as "furun group") signed the "acquisition agreement on the acquisition of company shares" with guoxin huaxia information system group co., ltd. and zhejiang guoxin chengzhi information technology co., ltd. as of the date of this announcement, the above-mentioned share transfer has not been carried out as expected, and there are significant uncertainties in the transfer of shares of the controlling shareholder!

(v) risk warning for stock pledge by controlling shareholders and persons acting in concert

as of the date of this announcement, the company's controlling shareholder furun group and its concerted party zhejiang zhuji huifeng venture capital co., ltd. hold a total of 126,520,708 shares of the company, accounting for 24.94% of the company's total share capital, and have pledged a total of 100.50 million shares of the company, accounting for 79.43% of their total holdings and 19.81% of the company's total share capital. if there are other major changes, the company will fulfill its information disclosure obligations in a timely manner in accordance with regulations. investors are kindly requested to pay attention to risks!

(vi) risk of uncertainty in the company's repurchase plan

on june 18, 2024, the company disclosed the "announcement on the plan to repurchase the company's shares by centralized bidding transactions" (announcement no.: 2024-065). the company's repurchase plan may face the following uncertainties and risks:

(1) the risk that the company's stock price continues to exceed the price cap disclosed in the repurchase plan, resulting in the repurchase plan being unable to be implemented;

(2) the risk that the repurchase plan may be changed or terminated according to the rules due to major changes in the company's production and operation, financial status, external objective conditions, etc.;

(3) if the regulatory authorities issue new regulatory documents related to repurchase, there is a risk that the corresponding repurchase terms will need to be adjusted according to the new regulatory rules during the implementation of this repurchase; the company will make repurchase decisions at an appropriate time within the repurchase period based on market conditions, strive to promote the smooth implementation of this repurchase plan, and fulfill its information disclosure obligations in a timely manner based on the progress of the share repurchase. investors are kindly requested to pay attention to investment risks!

it is worth mentioning that in terms of performance, *st furun has suffered losses for four consecutive years since 2020. according to this year's semi-annual report, the company is still in a state of continuous loss. in the first half of the year, the company achieved operating income of 41.0941 million yuan, a year-on-year decrease of 28.58%, and a net loss of 88.0445 million yuan attributable to the parent company.