On the interactive platform "Self-Question and Self-Answer," causing a sharp rise in stock prices! CSRC: Fines!

Two concept stocks related to “brain-computer interfaces” are under investigation by the China Securities Regulatory Commission. Due to misleading statements, both companies have been penalized by the Shenzhen Securities Regulatory Bureau.

On March 17, Yingji Xin (rights protection) (688209) received a “Notice of Administrative Penalty” from the Shenzhen Securities Regulatory Bureau, which stated: On January 6, Yingji Xin disclosed inaccurate and incomplete information on the interactive platform, causing or potentially causing investors to make wrong judgments. After the disclosure, the market paid attention, the company’s stock price significantly deviated from market trends, and abnormal fluctuations occurred, suspected of violating the Securities Law and constituting misleading statements as described in the Securities Law.

The Shenzhen Securities Regulatory Bureau plans to decide: Yingji Xin will be given a warning and fined 4 million yuan; Yingji Xin’s directors and CEO Chen Xin, Chairman and General Manager Huang Hongwei, and Board Secretary Wu Renchao will each receive warnings and fines of 2.1 million yuan, 1.1 million yuan, and 800,000 yuan respectively. The total estimated fines amount to 8 million yuan.

Looking back at the case, Yingji Xin’s stock price increased nearly 13% over three trading days from January 5 to 7.

Related to Yingji Xin’s stock price fluctuations, on January 5, Yingji Xin planned to post a “self-Q&A” on the Shanghai Stock Exchange’s e-interaction platform, asking about “the company’s product progress and future plans in core chips such as brain signal acquisition.” The next day after market close, the company responded that “through early investment layout, the company has entered the brain-computer interface chip field. The IPA1299 launched by the company is an 8-channel, low-noise 24-bit ADC chip, used for high-precision measurement of biological electrical signals, suitable for brain signal acquisition and other brain-computer interface scenarios. The IPA1299 chip has been mass-produced and shipped, with performance parameters comparable to leading overseas chips.”

However, this response was inaccurate. Yingji Xin later issued a clarification on January 7 at 7:48 a.m., titled “Explanation of the Response to Issues on the Shanghai Stock Exchange E-Interaction Platform,” providing additional disclosures.

In the clarification, Yingji Xin stated that the claim of “entering the brain-computer interface chip field” was misleading, as the company’s brain-computer interface products are non-invasive, significantly different from the invasive technology paths dominant abroad. Additionally, the “IPA1299 chip” was jointly developed by Yingji Xin and its affiliated company Jingxin Weier (Changzhou) Electronic Technology Co., Ltd., currently in the market cultivation stage, not yet achieving large-scale sales and revenue, which contradicts the earlier statement that “the company has mass-produced and shipped the IPA1299.”

Regarding the receipt of the “Notice of Administrative Penalty,” Yingji Xin responded that as of the date of this announcement, all business activities are proceeding normally. The company believes that the relevant information disclosure violations do not involve other risk warning situations or major illegal mandatory delisting conditions.

“Here, the company sincerely apologizes to investors and asks for their understanding. The company will learn from this experience, strengthen internal governance, improve the quality of information disclosure, and strictly comply with relevant laws and regulations, truthfully, accurately, completely, timely, and fairly fulfilling its disclosure obligations to protect the interests of the company and investors,” Yingji Xin stated.

On the same day, March 17, Yahui Long (rights protection) (688575) was also penalized by the Shenzhen Securities Regulatory Bureau for related disclosures about “brain-computer interfaces.” The company disclosed on January 6 that it signed a “Strategic Cooperation Framework Agreement” with Shenzhen Brain Chain Technology Co., Ltd., but the information failed to accurately and completely reflect the actual technical route and product status of Brain Chain. After the disclosure, the company’s stock price deviated from market trends and experienced abnormal fluctuations.

The Shenzhen Securities Regulatory Bureau also considered Yahui Long to have made misleading statements illegally. In the “Administrative Penalty Decision,” the bureau decided to order Yahui Long to correct the situation, issued a warning, and fined 4 million yuan; Chairman Hu Kunhui received a warning and a 2 million yuan fine; Board Secretary Wang Mingyang received a warning and a 1.5 million yuan fine.