Core Viewpoint - The article discusses the ongoing investigation into Sichuang Medical (思创医惠) for alleged fraudulent activities related to securities issuance and financial misreporting, highlighting the company's past violations and current challenges in the market [3][4][6]. Summary by Sections Investigation and Allegations - On August 14, Sichuang Medical received a notice from the Hangzhou Public Security Bureau regarding the collection of evidence for a case involving alleged fraudulent securities issuance [3]. - The case is currently in the investigation stage, with no clear conclusions yet, and the company has committed to cooperating with the investigation and fulfilling its disclosure obligations [4]. Previous Violations - Sichuang Medical was previously investigated by the China Securities Regulatory Commission (CSRC) for information disclosure violations, leading to an administrative penalty issued by the Zhejiang Securities Regulatory Bureau on January 8, 2024 [6]. - The investigation revealed that the company had fabricated significant false information in its public bond issuance documents, resulting in inflated revenue and profits. Specifically, from 2017 to 2019, the company inflated its revenue by 34.93 million and profits by 33.02 million, which constituted 20.03% of the total profit for that period [6]. - For the period of January to September 2020, the company inflated its revenue by 60.96 million and profits by 52.37 million, accounting for 56.81% of the total profit for that period [6]. Financial Impact and Penalties - The Zhejiang Securities Regulatory Bureau imposed a fine of 85.7 million on Sichuang Medical and issued warnings to the company's former chairman and general manager, who also faced a fine of 7.5 million and a 10-year market ban [7]. - The company has experienced significant revenue declines and continuous losses due to intense industry competition and business adjustments, with no signs of improvement [7]. - As of August 2025, Sichuang Medical completed the divestiture of its 100% stake in its subsidiary, Medical Technology [7].