On the evening of September 28, Lianchuang Optoelectronics (investor rights) announced that approximately 1.692 billion yuan of the company's funds had been misappropriated by its controlling shareholder, Jiangxi Electronic Group Co., Ltd. (the "Electronic Group"), and that the amount had not been repaid or remediated within one month. Trading of the company's shares will be suspended for one day on September 29, and when trading resumes on September 30, other risk warning measures will be implemented. The ticker abbreviation will be changed to "ST Lianguang," while the stock code remains unchanged, and the shares will move to the risk warning board.
Under the relevant rules, other risk warning may be imposed on a listed company's shares when funds are non-operationally misappropriated by the controlling shareholder and its affiliates and the balance reaches 5% or more of the absolute value of the most recent audited net assets, or exceeds 10 million yuan, and repayment or remediation is not completed within one month.
According to a self-review in the half-year report, the company's wholly owned subsidiaries, Jiangxi Lianchuang Optoelectronics Marketing Center Co., Ltd. and Jiangxi Lianchuang Digital Intelligence Technology Co., Ltd., made payments to related parties actually controlled by the controlling shareholder under the pretext of signing trade agreements and paying advance payments. The funds ultimately flowed to the Electronic Group, and 1.692 billion yuan could not be returned due to the Electronic Group's debt crisis, constituting non-operational misappropriation of funds.
The company disclosed on August 28 a cautionary announcement that other risk warning measures might be implemented. Under listing rules, if repayment or remediation is not completed within one month from the date of disclosure, the other risk warning will be imposed; now that the deadline has passed and the funds remain unrepaid, the ST designation has moved from "possible" to "confirmed," with the specific amount subject to the results of the China Securities Regulatory Commission's investigation.
The debt crisis has spilled over externally, with defaults and freezes following one after another. Public information shows that the Electronic Group holds a 19.25% stake in Lianchuang Optoelectronics and is the controlling shareholder; Wu Rui became the actual controller in 2019 by acquiring equity in the Electronic Group. To maintain off-balance-sheet liquidity, the Electronic Group pledged a high proportion of its listed company shares, with the pledge ratio once reaching 81.99%, relying on rolling borrowing to repay old debt with new debt; that pledged share portion is now also frozen. During the 2026 stock price surge, it reduced its holdings and cashed out about 422 million yuan, but that remained a drop in the bucket relative to its huge debt. As the stock price fell and financial institutions tightened loan renewals, its funding chain eventually broke, and the crisis spread to Lianchuang Optoelectronics.
As of September 16, the company and its subsidiaries had overdue principal on financial institution loans and notes totaling 1.4392025 billion yuan, accounting for 32.26% of the most recent audited net assets; of that, newly added overdue loan principal in this period was 531.0007 million yuan, representing 11.90% of net assets. As of August 4, applications had been filed to freeze 396 million yuan in bank accounts, with 11.1 million yuan actually frozen; the company previously announced that its 16.66% stake in Xiamen Hualian Electronics, 20% equity interest in Zhongjiu Optoelectronics, and 20% stake in associate company Xiamen Hongfa Electroacoustic were frozen. The company admitted that the large advance payments are difficult to recover in the short term and that it faces a relatively serious phased liquidity risk.
Both performance and share price are under pressure, and the investigation is ongoing. On fundamentals, Lianchuang Optoelectronics achieved operating revenue of 1.324 billion yuan in the first half of 2026, down 19.64% year on year; net profit attributable to the parent was 167 million yuan, down 36.70% year on year. The company's 2025 annual report was once issued a qualified opinion by Zhonghua Certified Public Accountants, indicating that audit risk signals had already appeared.
In the secondary market, the company's stock closed at 13.55 yuan on September 28, down 6.87%, with a cumulative decline of 62.51% over the past 60 trading days. Its total market value was about 6.11 billion yuan, a sharp pullback from the year's high, with market value evaporating by about 29.4 billion yuan; as of June 30, the number of shareholders was 76,700, an increase of 22.41% in the second quarter alone.
On the regulatory front, on August 4 the company and actual controller Wu Rui each received a notice of case filing from the China Securities Regulatory Commission for suspected violations including failure to disclose non-operational fund transactions as required. On the same day, Wu Rui applied to resign as the company's president due to work reasons, and after resigning still serves as the company's chairman, chairman of the board strategy and sustainable development committee, and member of the remuneration and assessment committee.
Under listing rules, if the fund misappropriation situation is completely eliminated and a special verification is conducted by an accounting firm, the company may apply to the Shanghai Stock Exchange to revoke the risk warning, and the matter still requires the exchange's review and approval. The company is currently urging the controlling shareholder to formulate a repayment plan, while negotiating debt extensions, broadening financing channels, and advancing legal recovery efforts in an effort to remove the "ST" label as soon as possible.
Thematic luster cannot conceal governance failures. For the 76,700 shareholders, whether the controlling shareholder can present a binding and executable repayment plan, and whether the listed company can actually recover losses through litigation, are the key factors determining the pace of "de-labeling" and valuation recovery.
Comments