Essence Information Technology listed on the Shanghai Star Market in February 2020. In May 2022, the company announced that it was being investigated by the Chinese securities regulator with regards to disclosures. Six months later, in November, the regulator announced the findings of its investigation which revealed that the company had faked 95% of its profits between FY16 and FY21. This prompted a 70% share price collapse over the next month. Our models suggested that the company's financials had traits similar to past frauds. It was delisted in July 2023. Essence Information is a confirmed fraud.

Last updated May 2024

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