Lianchuang Optoelectronics and its actual controller Wu Rui have recently received investigation notices from the China Securities Regulatory Commission over suspected violations including failure to disclose non-operating fund transactions as required. The company also disclosed that its controlled subsidiaries have had bank accounts frozen with a total applied amount of approximately 395.75 million yuan, of which about 11.1 million yuan has actually been frozen. Overdue financial institution borrowings and bill principals for the company and its subsidiaries total 505.65 million yuan, exceeding 10 percent of the latest audited net assets. Part of the shares held by the controlling shareholder Jiangxi Electronics Group have been judicially frozen and will enter judicial auction proceedings, posing a risk of change in control. The company is also embroiled in multiple financial loan disputes and bill dispute litigations and arbitrations. Wu Rui has resigned as president but remains chairman. As of the close on August 4, Lianchuang Optoelectronics shares traded at 27.38 yuan, with a market capitalization of 12.3 billion yuan and approximately 62,700 shareholders.
Jiangxi Lianchuang Opto-electronic Science & Technology Co LtdCSRC investigation and multiple violations disclosed
Controlling shareholder's shares frozen and auctioned due to related issues