7.5 Million Fine Imposed! Unprecedented Penalties for "Riding on Hot Topics," "Key Few" Cannot Escape Accountability

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The regulatory authorities have taken unprecedented action against “hotspot riding,” and the “key minority” have also been held accountable. On March 17, Yahui Long and two senior executives received a fine of 7.5 million yuan, while Yingji Core and related responsible persons face a combined pre-fine of 8 million yuan.

Source: Visual China Group

Yahui Long’s “hotspot riding” fine issued, our publication previously issued a warning

On March 17, Yahui Long (688575.SH) disclosed receiving an “Administrative Penalty Decision” issued by the Shenzhen Securities Regulatory Bureau.

According to investigation, at 17:43 on January 6, 2026, Yahui Long announced that the company had signed a “Strategic Cooperation Framework Agreement” with Shenzhen Brain-Computer Starlink Technology Co., Ltd. (hereinafter: Brain-Computer Starlink). The disclosed information about Brain-Computer Starlink’s technical route and products was “deeply cultivating non-invasive and invasive dual technical paths” and “currently has developed products such as brainwave acquisition analyzers, brain-computer interface sleep aids, brain-computer interface sleep monitors, and vagus nerve stimulators.”

However, in reality, Brain-Computer Starlink’s technical path is non-invasive, with only a prototype of the vagus nerve stimulator, which is still in the registration preparation stage for Class II medical devices; the other products are still in R&D with no prototypes. The information disclosed in this announcement failed to accurately and completely reflect Brain-Computer Starlink’s actual technical route and product status.

At 21:27 on January 6, Yahui Long issued a supplementary announcement titled “Regarding Voluntary Disclosure of Signing the Strategic Cooperation Framework Agreement,” which stated that the main products under development included brainwave acquisition analyzers, brain-computer interface sleep aids, brain-computer interface sleep monitors, and vagus nerve stimulators, and that these products had not yet entered the registration application stage.

However, the supplementary disclosure was also incomplete. In fact, Brain-Computer Starlink’s brainwave acquisition analyzers currently have no prototypes or models, only some components in early testing; the design of the brain-computer interface sleep aids and sleep monitors depends on the incomplete brainwave analyzers, which are only long-term plans. The supplementary announcement did not fully disclose the actual development stages of these products.

Subsequently, the Shanghai Stock Exchange issued an inquiry letter to Yahui Long. According to Yahui Long’s relevant reply announcement on January 7, the supplementary disclosure regarding the development stages of the brainwave analyzers, sleep aids, and sleep monitors still stated “not yet in the registration application stage,” and mentioned that Brain-Computer Starlink “has market sales capability in non-serious medical products and currently has orders.” This announcement still did not fully disclose the actual development stages of these products, and the non-serious medical products involved currently have no actual orders, only framework cooperation agreements. The statements did not accurately reflect the actual situation of Brain-Computer Starlink’s non-serious medical products.

The Shenzhen Securities Regulatory Bureau pointed out that the above disclosures by Yahui Long were inaccurate and incomplete, which caused or可能导致 investors to make incorrect judgments. After the relevant information was disclosed, the company’s stock price significantly deviated from the market trend and experienced abnormal fluctuations, constituting a misleading statement illegal act under the Securities Law.

Choice Financial Terminal data shows that on January 6, the company’s stock closed at 15.53 yuan per share, up 6.52%, with a trading volume of 19.2615 million shares, nearly 300% higher than the previous trading day. On January 7, the stock closed unchanged from the previous day, with a trading volume of 28.754 million shares, an increase of 49.28% over the previous day.

In response to the above violations, the Shenzhen Securities Regulatory Bureau decided to order Yahui Long to correct, issued a warning, and imposed a fine of 4 million yuan. The company’s chairman, Hu Kunhui, and secretary, Wang Mingyang, were fined 2 million yuan and 1.5 million yuan respectively.

Along with the fine, Yahui Long disclosed that Wang Mingyang applied to resign as secretary of the board of directors due to personal reasons but will continue to hold other positions in the company. Before a new secretary is appointed, Chairman Hu Kunhui will temporarily perform the secretary duties.

Yahui Long’s earnings report shows that in 2025, the company achieved operating revenue of 1.809 billion yuan, a year-on-year decrease of 10.07%, and net profit attributable to the parent of 24.019 million yuan, down 92.03%. The fine amount this time accounts for approximately 16.65% of its net profit attributable to the parent.

Additionally, the 2024 annual report shows that Hu Kunhui and Wang Mingyang received pre-tax compensation of 562,500 yuan and 712,400 yuan respectively in 2024. This means the fine amounts are more than 3.5 times and 2 times their annual salaries.

Before the public disclosure of the regulatory warning, we published an article titled “Brain-Computer Interface Concept Explosive, Yahui Long Chases the Hotspot Again, How About Stocks with ‘Brain Content’?” warning about the risks of “hotspot riding.”

Yingji Core faces a pre-fine of 4 million yuan for “hotspot riding,” with two billion-level block trades occurring before the case was filed

On March 17, Yingji Core (688209.SH) also received a “Pre-Notification of Administrative Penalty” from the Shenzhen Securities Regulatory Bureau for “hotspot riding.”

According to investigation, on January 5, 2026, Yingji Core planned to use a “self-question and answer” approach to post questions on the Shanghai Stock Exchange E-Interaction platform about “company’s progress and future plans in core chips for brainwave signal acquisition,” and the next day, after market hours, replied that “the company has invested early and entered the brain-computer interface chip field. The IPA1299 launched by the company is an 8-channel, low-noise 24-bit ADC chip, specially used for high-precision measurement of biological electrical signals, applicable to brainwave signal acquisition and related brain-computer interface scenarios. The IPA1299 chip has been mass-produced and shipped, with performance parameters comparable to leading overseas chips.”

However, the company’s brain-computer interface products’ technical path is non-invasive, significantly different from the invasive dominant technology abroad. The “IPA1299” chip is jointly developed by Yingji Core and its affiliated company Jingxin Weier (Changzhou) Electronic Technology Co., Ltd., currently in market cultivation, with no large-scale sales or revenue, inconsistent with the reply.

On January 7, the company issued a “Clarification Announcement on Responses to Questions on the Shanghai E-Interaction Platform,” providing additional disclosures.

It is reported that Yingji Core’s stock prices increased by 7.62%, 0.23%, and 4.51% respectively from January 5 to 7.

The Shenzhen Securities Regulatory Bureau pointed out that Yingji Core’s above actions constitute misleading statements under the Securities Law, and decided to: warn Yingji Core and impose a fine of 4 million yuan; warn its directors and CEO Chen Xin, Chairman and General Manager Huang Hongwei, and Secretary Wu Renchao, and fine them 2.1 million yuan, 1.1 million yuan, and 800,000 yuan respectively.

In 2024, Chen Xin, Huang Hongwei, and Wu Renchao received pre-tax compensation of 2.4676 million yuan, 4.572 million yuan, and 690,300 yuan respectively. The fines are over 85%, 24%, and 115% of their annual salaries.

Notably, before the case was filed for investigation into the company’s suspected disclosure violations, two large block trades occurred on February 4 and 10, both at a discount, with transaction amounts of 127 million yuan and 134 million yuan, respectively, with the buyers being institutional dedicated accounts.