CEO planned the "self-question and self-answer" hype scheme and was fined 2.1 million; Yingji Semiconductor responds

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To ride the hype of “brain-computer interfaces,” Yingjixin (rights protection) (688209.SH) CEO personally orchestrated a “self-question and self-answer” double act, which resulted in regulatory authorities planning to fine the company and three senior executives a total of 8 million yuan.

After Yingjixin was filed for suspected information disclosure violations, it received the “Administrative Penalty Notice” on the evening of March 17. The notice shows that on January 6, Yingjixin provided inaccurate and incomplete information on the interactive platform, which could have led or may lead investors to make wrong judgments. After the disclosure of this information, the market paid attention, the company’s stock price significantly deviated from market trends, and abnormal fluctuations occurred, suspected of violating relevant laws and regulations, constituting misleading statements illegal behavior.

Yingjixin believes that the suspected violations of information disclosure in this notice do not involve other risk warning situations or major illegal mandatory delisting conditions stipulated by the “Shanghai Stock Exchange Sci-Tech Innovation Board Stock Listing Rules.” The final outcome of this administrative penalty will be based on the “Administrative Penalty Decision” issued by the regulatory authority.

In response, 21Kuaixun reporter contacted Yingjixin as an investor. The company’s staff stated that the subsequent penalty process can refer to Yahui Long (rights protection). It is not clear whether this incident will lead to changes in senior management, and no information has been received about the impact of this event on the company’s clients. Public information shows that Yahui Long, also riding the “brain-computer interface” hype and suspected of information disclosure violations, received an “Administrative Penalty Decision” on March 17. On the same day, the company announced the resignation of the secretary of the board of directors “due to personal reasons.”

Previously, Yingjixin planned a “self-question and self-answer” event, releasing on January 5 on the interactive platform a question about “the company’s progress and future plans in core chips such as brain signal acquisition,” and the next day after market close, responded that the company had entered the brain-computer interface chip field, and that the IPA1299 chip “has been mass-produced and shipped, with performance parameters comparable to leading overseas chips.”

However, the technical path of the company’s brain-computer interface products is non-invasive, which differs significantly from the invasive dominant technology path abroad. The “IPA1299 chip” was jointly launched by Yingjixin 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 is inconsistent with the description of “the company’s IPA1299 has been mass-produced and shipped.”

In response, Yingjixin issued a clarification on January 7 titled “Explanation on the Response to Questions on the Shanghai Stock Exchange E-Interaction Platform,” providing additional disclosures. At that time, Yingjixin’s stock price increased by nearly 13% over the three trading days from January 5 to 7.

Regulators believe that in the aforementioned “self-question and self-answer” event, Chen Xin, as Yingjixin’s director and CEO, advised, decided, and participated in the misleading information disclosure; Huang Hongwei, as chairman and general manager, was responsible for managing the company’s information disclosure work and did not verify further before the misleading disclosure; Wu Renchao, as secretary of the board, reviewed and participated in the misleading disclosure.

The regulatory authority plans to issue a warning to Yingjixin and impose a fine of 4 million yuan; to Chen Xin, a warning and a fine of 2.1 million yuan; to Huang Hongwei, a warning and a fine of 1.1 million yuan; and to Wu Renchao, a warning and a fine of 800,000 yuan.

Public information shows that Yingjixin mainly develops and sells power management chips and fast-charging protocol chips, with main products including power management chips, battery management chips, mixed-signal SoC chips, and other series. On February 5, Yingjixin released an earnings report, estimating that by 2025, the company will achieve a total revenue of 1.612 billion yuan, a year-on-year increase of 12.65%; and a net profit attributable to shareholders of 177 million yuan, up 42.81% year-on-year.

As of the midday close on March 18, Yingjixin’s stock price rose by 3.28%, to 21.72 yuan per share.

(Statement: The content of this article is for reference only and does not constitute investment advice. Investors operate at their own risk.)