Two Listed Companies Fined 15.5 Million Yuan for Capitalizing on "Brain-Computer Interface" Hype

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Due to riding the wave of “brain-computer interface” hot topics, Yingji Xin (688209.SH) and Yahui Long (688575.SH) were both penalized on the same day, with a total fine of 15.5 million yuan.

On the evening of March 17, Yingji Xin announced that it had received the “Administrative Penalty Notice of Prior Notification” from the Shenzhen Regulatory Bureau of the China Securities Regulatory Commission (CSRC) on the same day. Due to suspected violations of information disclosure laws and regulations, the company and three core executives are proposed to be fined a total of 8 million yuan.

Among them, Yingji Xin was fined 4 million yuan, with Director and CEO Chen Xin, Chairman and General Manager Huang Hongwei, and Board Secretary Wu Renchao fined 2.1 million yuan, 1.1 million yuan, and 800,000 yuan respectively.

The main reason for Yingji Xin’s penalty is its self-answered question on an interactive platform to ride the “brain-computer interface” hot topic. It was disclosed that on January 5 this year, Yingji Xin planned to use a “self-answered” approach to post a question on the Shanghai Stock Exchange’s e-Interaction platform about “the company’s progress and future plans in core chips such as brain signal acquisition.” The next day after market close, the company responded that “through early investment layout, the company has entered the field of brain-computer interface chips,” and that its IPA1299 chip has been mass-produced and shipped, with performance parameters comparable to leading overseas chips.

Shenzhen regulatory authorities confirmed that Yingji Xin’s brain-computer interface product’s technical path is non-invasive, significantly different from the invasive dominant technology path abroad. The “IPA1299 chip” was jointly developed by Yingji Xin and its affiliated company Jingxin Weier (Changzhou) Electronic Technology Co., Ltd., and is currently in the market cultivation stage, not yet achieving large-scale sales and revenue. The statement claiming “the company’s IPA1299 has been mass-produced and shipped” is inconsistent with the current situation.

The Shenzhen regulatory bureau believes that the information disclosed by Yingji Xin on January 6 on the interactive platform was inaccurate and incomplete, which could have led investors to make incorrect judgments. After the disclosure, market attention was triggered, Yingji Xin’s stock price deviated significantly from market trends, and abnormal fluctuations occurred, which is suspected of violating relevant regulations and constitutes misleading statements as described in Article 197, Paragraph 2 of the Securities Law.

According to official information, Yingji Xin was established on November 20, 2014, and listed on the STAR Market in 2022. Its main business includes power management chips, fast-charging protocol chips, data transmission processing chips, wireless signal processing chips, and smart audio-visual chips. Its R&D results are applied in mobile phones, computers, TVs, digital cameras, AI hardware systems, mobile power supplies, automotive electronics, and other fields.

By 2025, Yingji Xin’s total operating revenue is expected to reach approximately 1.612 billion yuan, a 12.65% increase year-on-year; net profit attributable to the parent company is expected to be about 177 million yuan, a 42.81% increase year-on-year. The rapid growth in performance is 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 profit margin improvements driven by cost reduction and efficiency enhancement.

In addition to Yingji Xin, Yahui Long also announced on March 17 that it received an “Administrative Penalty Decision” from the Shenzhen CSRC. The penalty was due to the company’s inaccurate and incomplete disclosures in its January 6, 2026, announcement about signing a strategic cooperation framework agreement with Brain Machine Starlink, involving technical routes and product details, which constituted misleading statements. The company was ordered to correct, received a warning, and was fined 4 million yuan; Chairman Hu Kunhui was warned and fined 2 million yuan; Board Secretary Wang Mingyang was warned and fined 1.5 million yuan, totaling 7.5 million yuan in penalties. The company stated that this penalty does not involve delisting and that operations are normal.

Yahui Long previously disclosed on January 6 that it would cooperate with Brain Machine Starlink in product development, market promotion, and equity investment, describing Brain Machine Starlink as a company driven by AI, specializing in both non-invasive and invasive brain signal technologies, with products like brain electroencephalogram analyzers. After this announcement, media reports and market attention followed. Later, due to inaccurate and incomplete disclosures, the company was investigated by the CSRC.

As of the morning of March 18, Yingji Xin’s stock price increased by 3.28%, closing at 21.72 yuan per share, with a market value of 9.422 billion yuan; Yahui Long’s stock price decreased by 0.85%, closing at 15.14 yuan per share, with a market value of 8.651 billion yuan.