Jiangxi Lianchuang Opto-electronic Science & Technology Co Ltd

Lianchuang Optoelectronics announced that because its controlling shareholder, Jiangxi Electronics Group, non-operationally occupied 1.692 billion yuan of company funds and the amount has still not been returned after nearly one month, the company's shares will be suspended for one day on September 29, 2026. After trading resumes on September 30, 2026, other risk warnings will be imposed, and the A-share abbreviation will be changed to ST Lianguang. The company said Jiangxi Electronics Group is experiencing a debt crisis, resulting in 1.692 billion yuan of occupied funds still not returned as of the announcement date, with the specific amount subject to the results of the China Securities Regulatory Commission's investigation. Under Shanghai Stock Exchange listing rules, if a company's funds are non-operationally occupied by its controlling shareholder and related parties in an amount reaching 5 percent or more of the latest audited net asset value, or exceeding 10 million yuan, and the company fails to complete repayment or rectification within one month, the exchange will impose other risk warnings on its shares. Lianchuang Optoelectronics said the board and management are making every effort to urge Jiangxi Electronics Group to formulate a repayment plan for the occupied funds as soon as possible, while also broadening financing channels through multiple means, negotiating extensions and adjusted repayment plans with creditors, actively advancing relevant legal procedures, and intensifying collection efforts on receivables. The company's main business is the research, development, production and sales of laser products and traditional LED chip products, intelligent control products, backlight sources and application products, optoelectronic communication and intelligent equipment cables, and metal material products. Recently the company's share price has been weak, falling for five consecutive trading days, down 17.23 percent cumulatively since September, and down more than 70 percent for the year to date.

Lianchuang Optoelectronics released its 2026 interim report. The company's total operating revenue was 1.324 billion yuan, down 19.64% from the same period last year. Net profit attributable to the parent company was 167 million yuan, down 36.70% year-on-year. Net cash flow from operating activities was negative 1.464 billion yuan, a decrease of 1.438 billion yuan from the same period last year. The company's latest asset-liability ratio was 41.91%, gross margin was 16.06%, return on equity was 3.60%, and diluted earnings per share was 0.37 yuan. The number of shareholders was 76,700, and the top ten shareholders held 26.73% of the total share capital.

Lianchuang Optoelectronics opened limit-down on August 31, after its wholly owned subsidiary made payments to a related party of the controlling shareholder through trade agreements, with the prepayments ultimately flowing to the controlling shareholder. As of the end of the reporting period, 1.692 billion yuan had not been returned, constituting non-operating capital occupation. If the controlling shareholder fails to complete repayment or rectification within one month, the company's shares may be subject to other risk warnings. Meanwhile, the company released its 2026 half-year report, showing first-half operating revenue of 1.324 billion yuan, down 19.64 percent year on year; net profit of 167 million yuan, down 36.70 percent year on year; and non-GAAP net profit of 154 million yuan, down 34.97 percent year on year. Previously, the company and its actual controller Wu Rui had been placed on file for investigation by the China Securities Regulatory Commission for suspected violations including failure to disclose non-operating capital transactions as required. As of June 30, the company had 76,725 shareholders, an increase of 14,046 from the previous quarter.

Lianchuang Optoelectronics and its actual controller and chairman Wu Rui have each received a notice of investigation from the China Securities Regulatory Commission for suspected illegal activities including failure to disclose non-operating fund transactions as required. The company stated that all business operations are currently proceeding normally and it will actively cooperate with the investigation and fulfill its information disclosure obligations during the investigation period. On the same day, Wu Rui resigned from the position of company president due to work reasons, but will continue to serve as chairman and in other roles. As of August 4, Wu Rui does not directly hold any company shares. Jiangxi Electronics Group, which he controls, holds 86.7815 million shares of Lianchuang Optoelectronics, accounting for 19.25% of the company's total share capital, making it the controlling shareholder. In addition, the company and its subsidiaries have overdue financial institution borrowings and bill principals totaling 506 million yuan, exceeding 10% of the company's most recent audited net assets. The company is raising funds for debt repayment through various channels and negotiating extensions with creditors.

On the evening of August 4, two A-share companies, ST Cuihua and Lianchuang Optoelectronics, separately announced that their actual controllers have been placed under investigation by the China Securities Regulatory Commission for suspected illegal information disclosure. Chen Siwei, the controlling shareholder and actual controller of ST Cuihua, is under investigation for suspected disclosure violations. The company had already been investigated twice before, in February and May 2026. If subsequent penalties are deemed to trigger mandatory delisting for major violations, the company's shares will be delisted. Meanwhile, Guo Yingjie, a concert party of a shareholder holding more than 5%, has also been placed under investigation for suspected disclosure violations. Lianchuang Optoelectronics and its actual controller Wu Rui are under investigation for suspected failure to disclose non-operating fund transactions and other violations as required. On the same day, the company disclosed overdue financial institution borrowings and bill principals totaling 506 million yuan, exceeding 10% of the latest audited net assets. Wu Rui has resigned as president but remains chairman. In the secondary market, ST Cuihua's share price has plummeted over 84% this year, with a latest market value of 500 million yuan. Lianchuang Optoelectronics' share price has tumbled over 56% this year, with a latest market value of 12.3 billion yuan.

The People's Bank of China announced it will conduct a 500 billion yuan outright reverse repo operation on August 5, with a term of three months, to maintain ample liquidity in the banking system. Wanhua Chemical disclosed that its 1.1 million ton per year MDI unit at the Yantai industrial park will shut down for maintenance starting August 10 for about 45 days, as part of routine annual maintenance. The State Post Bureau has launched an investigation into STO Express for inadequate safety production management of its franchisees. In addition, Lianchuang Optoelectronics and its actual controller Wu Rui have been placed under investigation by the China Securities Regulatory Commission for allegedly failing to disclose non-operating fund transactions as required. Zhongke Sanhuan plans to acquire a controlling stake in Ningbo Zhongdian Magnetic Acoustics Electronics, and Jiangnan New Materials plans to raise no more than 1.6 billion yuan through a private placement for high-purity electronic-grade copper oxide powder and liquid cooling heat dissipation module projects.