Zhongheng Design: The valuation risk is relatively high, with a static price-to-earnings ratio of 94.56.

On April 1, Zhongheng Design (603017.SH) issued an announcement regarding abnormal fluctuations in stock trading. The company’s stock closed with a cumulative deviation in the closing price increase reaching 20% over three consecutive trading days on March 30, 2026, March 31, 2026, and April 1, 2026. Pursuant to the relevant provisions of the 《Shanghai Stock Exchange Trading Rules》, this constitutes an abnormal fluctuation in stock trading.

In response to the abnormal fluctuations in the company’s stock trading, the company conducted a review of relevant matters. First, following the company’s self-inspection, the company’s business activities and internal production and operating order are normal; there has been no major change to the external market environment or industry policies. Second, following the company’s self-inspection and written inquiries confirming with the company’s controlling shareholder and actual controller, as of the date of this announcement, the company’s controlling shareholder and actual controller do not have any major matters related to the company that should be disclosed but have not been disclosed, including but not limited to major asset restructuring, share issuance, acquisitions, debt restructuring, business restructuring, asset stripping, asset injection, share repurchases, equity incentives, bankruptcy reorganization, major business cooperation, and the introduction of strategic investors. In addition, following the company’s self-inspection, no media reports or market rumors that require clarification or response were found. Moreover, following the company’s self-inspection, no other major events that could potentially have a significant impact on the company’s stock price were found. During the period when the company’s stock trading showed abnormal fluctuations, the company’s directors, senior management personnel, controlling shareholder, and actual controller had not engaged in buying or selling the company’s stock.

The company has highlighted multiple risks. On the one hand, the company’s stock closed with a cumulative deviation in the closing price increase reaching 20% over three consecutive trading days on March 30, 2026, March 31, 2026, and April 1, 2026. The company reminds the broad investing public to pay attention to the risks of trading in the secondary market, make rational decisions, and invest prudently. On the other hand, as of the date of this announcement, the company’s operating condition is normal, and there have been no major changes to its principal business. The company is in the engineering technical services industry, mainly engaged in engineering design and consulting related to industrial services and quality improvement in urban and rural construction, general contracting, project management, and engineering supervision. The company disclosed its 《2025 Third Quarterly Report》 on the website of the Shanghai Stock Exchange on October 28, 2025. From January to September 2025, the company achieved operating revenue of 7.78 billion yuan, representing a decrease of 15.36% year-on-year; it achieved net profit attributable to shareholders of listed companies of 5,626.81 million yuan, representing a decrease of 15.85% year-on-year.

In addition, the company also points out valuation risk: According to the industry price-earnings ratio data of the China Securities Regulatory Commission for China (as shown after the close on April 1, 2026) released by China Securities Index Co., Ltd., the industry’s static price-earnings ratio for the professional technical services industry is 36.22, and the rolling price-earnings ratio is 35.93; the company’s static price-earnings ratio is 94.56, and the rolling price-earnings ratio is 119.18. Both the company’s static and rolling price-earnings ratios are significantly higher than the industry’s average level.