Regulators Plan to Fine Yingji Semiconductor and 3 Executives 8 Million Yuan

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Daily Economic News Reporter | Peng Fei Daily Economic News Editor | Wei Wenyi

Due to suspected illegal and non-compliant information disclosure, Yingji Xin (rights protection) (SH688209) received regulatory penalties.

On the evening of March 17, Yingji Xin announced that it received the “Administrative Penalty Notice of Prior Notification” issued by the Shenzhen Regulatory Bureau of the China Securities Regulatory Commission (hereinafter referred to as the Shenzhen CSRC). Upon investigation, in early January 2026, Yingji Xin sought to ride the wave of the popular “brain-computer interface” track by artificially planning a “self-question and answer” on the Shanghai Stock Exchange e-Interaction platform.

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The Daily Economic News reporter (hereinafter referred to as the reporter) noted that in the “self-question and answer,” Yingji Xin not only exaggerated its chips’ applications in the brain-computer interface field but also issued misleading statements about “mass production shipments” that were seriously inconsistent with facts, causing the company’s stock price to deviate significantly from market trends and fluctuate abnormally.

In response to this malicious behavior of illegal hype through unauthorized disclosure channels, the Shenzhen CSRC plans to impose a total fine of 8 million yuan on Yingji Xin and three core executives: Chen Xin, Huang Hongwei, and Wu Renchao.

“Self-question and answer” fabricated positive news

The “Administrative Penalty Notice” shows that, upon investigation, on January 5, 2026, Yingji Xin planned to use the “self-question and answer” method to post on the Shanghai Stock Exchange e-Interaction platform a question about “the company’s product progress and future plans in core chips such as brain electrical signal collection,” and responded the next day after market hours that “the company has entered the brain-computer interface chip field through early investment layout. The IPA1299 launched by the company is an 8-channel, low-noise 24-bit ADC chip, specifically used for high-precision measurement of biological electrical signals, applicable to brain signal collection and other brain-computer interface scenarios. The IPA1299 chip has been mass-produced and shipped, with performance parameters comparable to leading overseas chip products.”

At that time, under the support of the popular “brain-computer interface” track, the related information disclosure by Yingji Xin attracted market attention, and the company’s stock price deviated significantly from market trends, with abnormal fluctuations.

The Shenzhen CSRC believes that Yingji Xin’s brain-computer interface product’s technical path is non-invasive, significantly different from the invasive dominant technology path abroad. Meanwhile, the “IPA1299 chip” was not launched solely by Yingji Xin but jointly developed with its affiliated company Jingxin Weier (Changzhou) Electronic Technology Co., Ltd. The product is currently in the market cultivation stage, and has not yet formed large-scale sales and revenue, which is inconsistent with the description in the reply that “the company launched the IPA1299” and “has been mass-produced and shipped.”

Although Yingji Xin issued a supplementary disclosure on the morning of January 7, 2026, through the “Notice on the Explanation of Relevant Issues on the Shanghai Stock Exchange e-Interaction Platform,” the Shenzhen CSRC believes that the relevant information disclosed by Yingji Xin on January 6 on the interactive platform was inaccurate and incomplete, which may have led investors to make wrong judgments. After the disclosure of this information, market attention was triggered, the company’s stock price deviated significantly from market trends, and abnormal fluctuations occurred, which violated relevant provisions of the “Securities Law of the People’s Republic of China” and constituted misleading statements.

The Daily Economic News found that, besides Yingji Xin, several other listed companies have recently been investigated by regulators for misleading information disclosure.

For example, on the evening of January 13, Rongbai Technology (rights protection) disclosed a major contract with CATL, claiming the total sales amount exceeded 120 billion yuan. Subsequently, the company was planned to be warned and fined by the China Securities Regulatory Commission Ningbo Bureau for misleading statements; Yahui Long (rights protection) issued an announcement on January 6 about signing a strategic cooperation framework agreement with Brain Starlink, but the disclosed information was inaccurate and incomplete, constituting misleading statements, and was later ordered to correct, warned, and fined by the Shenzhen CSRC.

Company apologizes to investors

According to the “Administrative Penalty Notice,” Chen Xin, as the director and CEO of Yingji Xin, advised, made decisions, and participated in the disclosure of the misleading information; Huang Hongwei, as chairman and general manager, is responsible for the company’s information disclosure management and did not verify further before the misleading disclosures; Wu Renchao, as the secretary of the board of directors, reviewed and participated in the disclosure of the misleading information. These three core executives failed to perform their duties diligently and ensure the truthfulness, accuracy, and completeness of the company’s information disclosure, making them directly responsible for the illegal disclosure behavior.

According to Article 197, Paragraph 2 of the Securities Law of the People’s Republic of China, the Shenzhen CSRC plans to decide to issue a warning to Yingji Xin 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; to Wu Renchao, a warning and a fine of 800,000 yuan. The total fines for the company and the three executives amount to up to 8 million yuan.

The Daily Economic News noted that just one month before this penalty, Yingji Xin released a strong annual performance report—achieving approximately 1.612 billion yuan in total revenue in 2025, a 12.65% increase year-on-year; and a net profit attributable to shareholders of about 177 million yuan, a 42.81% increase. The rapid growth in performance was mainly due to the quick increase in shipments in fields such as battery management, new energy, and industrial vehicle regulations, as well as overall gross margin improvements driven by cost reduction and efficiency enhancement.

Yingji Xin stated in the announcement that it sincerely apologizes to investors, will learn from the experience, strengthen internal governance, and improve the quality of information disclosure. Currently, the company’s operations and business are proceeding normally, and the illegal information disclosure involved in this incident does not involve other risk warning situations or major illegal mandatory delisting conditions stipulated by the “Shanghai Stock Exchange STAR Market Listing Rules.”

Cover image source: Visual China