Lianchuang Optoelectronics and its actual controller Wu Rui have been placed under investigation by the China Securities Regulatory Commission for suspected illegal activities including failure to disclose non-operating capital transactions as required. The company also disclosed that Wu Rui has resigned as president but remains chairman, and that 86.7815 million shares held by Jiangxi Electronics Group, which he controls, representing 19.25 percent of total share capital, are subject to judicial freezing, pending freezing, and judicial auction. In addition, the company and its subsidiaries have overdue financial institution borrowings and bill principal totaling 506 million yuan, exceeding 10 percent of the most recent audited net assets. Among these, a subsidiary marketing center, as drawer and acceptor, has 165 million yuan in overdue electronic commercial acceptance bills, and the company faces joint payment liability as guarantor. Some bank accounts of controlled subsidiaries have been frozen, with cumulative freeze applications of 396 million yuan and an actual frozen amount of 11.1041 million yuan. The company stated that all business activities are proceeding normally and it will actively cooperate with the investigation and raise funds to repay debts.
Jiangxi Lianchuang Opto-electronic Science & Technology Co LtdCSRC investigation for disclosure violations, judicial freezing of shares, and overdue debts.
Controlled by Wu Rui, whose shares are frozen and subject to auction due to the investigation.