Stock Price Anomaly: Yingji Semiconductor and Executives Face Proposed Combined Fines of 8 Million Yuan

Due to suspected illegal disclosure of information, Yingji Xin (SH688209, stock price 21.03 yuan, market value 9.122 billion yuan) has received regulatory penalties.

On the evening of March 17, Yingji Xin announced that it had received a “Preliminary Notice of Administrative Penalty” issued by the Shenzhen Regulatory Bureau of the China Securities Regulatory Commission (hereinafter referred to as “Shenzhen CSRC”). Upon investigation, in early January 2026, Yingji Xin attempted to ride the trending “brain-computer interface” sector by artificially orchestrating a “Q&A” on the Shanghai Stock Exchange e-Interaction platform.

Image source: Yingji Xin announcement

A reporter from Daily Economic News (hereinafter “the reporter”) noted that in the “Q&A,” Yingji Xin not only exaggerated its chip applications in the brain-computer interface field but also issued misleading statements about “mass production shipments” that were seriously inconsistent with facts, causing the company’s stock price to deviate significantly from market trends and fluctuate abnormally.

In response to this malicious behavior of illegal manipulation through unauthorized disclosure channels, the Shenzhen CSRC plans to impose fines totaling up to 8 million yuan on Yingji Xin and three core executives: Chen Xin, Huang Hongwei, and Wu Renchao.

Fictitious positive information on brain-computer interfaces triggered stock price fluctuations

The “Preliminary Notice of Administrative Penalty” states that, upon investigation, on January 5, 2026, Yingji Xin planned to post a question on the Shanghai Stock Exchange e-Interaction platform about “the company’s product progress and future plans in core chips such as brain electrical signal collection” through a “self-Q&A” approach, and the next day after market close, responded that “the company has entered the brain-computer interface chip field through early investment layout. The IPA1299 is an 8-channel, low-noise 24-bit ADC chip, designed for high-precision measurement of biological electrical signals, applicable to brain signal collection and related scenarios. The IPA1299 chip has been mass-produced and shipped, with performance parameters comparable to leading overseas chips.”

At that time, under the influence of the trending “brain-computer interface” sector, the related disclosures by Yingji Xin attracted market attention, causing its stock price to deviate markedly from market trends and fluctuate abnormally.

The Shenzhen CSRC believes that Yingji Xin’s brain-computer interface products follow a non-invasive technical route, which differs significantly from the invasive dominant technology abroad. Furthermore, the “IPA1299 chip” was not launched solely by Yingji Xin but jointly developed with its affiliated company Jingxin Weier (Changzhou) Electronic Technology Co., Ltd. This product is currently in the market cultivation stage and has not yet achieved large-scale sales and revenue, which contradicts the description in the response that “the company has launched the IPA1299” and “it has been mass-produced and shipped.”

Although Yingji Xin issued a supplementary disclosure on the morning of January 7, 2026, titled “Explanation of Relevant Issues on the Shanghai Stock Exchange e-Interaction Platform,” the Shenzhen CSRC considers that the information disclosed by Yingji Xin on January 6 on the interactive platform was inaccurate and incomplete, which could have led investors to make erroneous judgments. After the disclosure, market attention was triggered, the stock price deviated significantly from market trends, and fluctuations occurred, which is suspected of violating relevant provisions of the Securities Law of the People’s Republic of China and constitutes misleading statements.

The reporter from Daily Economic News found that, besides Yingji Xin, several other listed companies have recently been investigated for misleading disclosures.

For example, on the evening of January 13, Rongbai Technology (688005) disclosed a major contract with CATL (300750), claiming the total sales amount exceeded 120 billion yuan. Subsequently, the company was warned and fined by the Ningbo Regulatory Bureau of the CSRC for misleading statements; Yahui Long, in a January 6 announcement about signing a strategic cooperation framework agreement with Brain Starlink, disclosed inaccurate and incomplete information, constituting misleading statements, and was ordered to correct, warned, and fined by the Shenzhen CSRC.

Proposed fines totaling 8 million yuan for the company and executives

According to the “Preliminary Notice of Administrative Penalty,” Chen Xin, as director and CEO of Yingji Xin, recommended, decided, and participated in the above misleading disclosures; Huang Hongwei, as chairman and general manager, bears management responsibility for the company’s information disclosure and did not verify the information before disclosure; Wu Renchao, as secretary of the board, reviewed and participated in the misleading disclosures. These three core executives failed to fulfill their duties diligently and did not ensure the truthfulness, accuracy, and completeness of the company’s information disclosures, making them directly responsible for the illegal disclosure behavior.

Based on Article 197, Paragraph 2 of the Securities Law of the People’s Republic of China, the Shenzhen CSRC plans to issue a warning to Yingji Xin and impose a fine of 4 million yuan; issue warnings and fines of 2.1 million yuan to Chen Xin; 1.1 million yuan to Huang Hongwei; and 800,000 yuan to Wu Renchao. The total fines for the company and the three executives amount to up to 8 million yuan.

The reporter from Daily Economic News noted that just one month before this penalty, Yingji Xin had reported impressive annual results—achieving approximately 1.612 billion yuan in total revenue in 2025, a 12.65% increase year-over-year; and a net profit attributable to shareholders of about 177 million yuan, up 42.81% from the previous year. The rapid growth was mainly due to significant increases in shipments across battery management, new energy, industrial vehicle regulations, and overall gross profit margin improvements driven by cost reduction and efficiency enhancement.

Image source: Yingji Xin 2025 Annual Performance Report

Yingji Xin stated in the announcement that it sincerely apologizes to investors, will learn from the experience, strengthen internal governance, and improve the quality of information disclosure. Currently, the company’s operations and business are proceeding normally. The illegal disclosure behaviors involved in this incident do not trigger other risk warning situations or major illegal mandatory delisting under the Shanghai Stock Exchange STAR Market Listing Rules.

Disclaimer: The content and data of this article are for reference only and do not constitute investment advice. Please verify before use. Operate at your own risk.

Cover image source: Liu Guomei

(Edited by Zhao Yanping HF094)