SURFILTER Fined for Financial Fraud: RMB 112 Million in Inflated Revenue Over Three Years
CSRC uncovers fabricated revenue and fines executives.
On June 20, 2025, China’s securities regulator issued a pre-notification of administrative penalties against cybersecurity firm SURFILTER, citing serious financial fraud between 2020 and the first half of 2022. The company was fined RMB 5 million, and its shares will be labelled with an "ST" (Special Treatment) warning starting June 24.
According to the China Securities Regulatory Commission (CSRC), SURFILTER artificially inflated its revenue by RMB 112 million and its profits by over RMB 73 million during the three-year period through its wholly owned subsidiary, Act-Telecom. The fraud involved fabricating contracts with no real commercial substance.
The financial manipulation had a significant impact on the company’s earnings reports. In 2020, the inflated profits accounted for 85.93% of the reported figure, and 70.03% in 2021. As a result, SURFILTER’s 2020 and 2021 annual reports, as well as its 2022 semi-annual report, contained false information.
In addition to the corporate penalty, individual fines were also imposed: Chairman Jing Xiaojun and Vice President Lin Fei were each fined RMB 2.5 million, while CFO Li Zhiqiang and the finance manager of the subsidiary, Ma Ping, were fined RMB 1 million each. Trading of SURFILTER shares will be suspended on June 23 and will resume on June 24 under the new ticker “ST SURFILTER.”
Note: The penalties are based on the CSRC’s administrative sanction notice dated June 20, 2025. Final decisions are pending the official sanction order.
