Regulatory penalties have now been formally issued.
Following an investigation by the China Securities Regulatory Commission (CSRC) that began over a month ago, the process of holding the Yangzi family accountable has commenced.
On the evening of June 26, Julig Suoju issued an announcement stating that the Hebei Bureau of the CSRC had issued a prior notice of administrative penalty. The notice determined that the company had used its interactive platform to publish misleading statements, capitalizing on the commercial aerospace market trend. The company, its then board secretary Zhang Yun, and its then general manager Yang Chao (nephew of Yangzi) were collectively fined 9.5 million yuan.
With the regulatory penalty finalized, the accountability phase for this speculative "farce" involving aerospace themes, which affected nearly 100,000 retail investors, has officially begun.
9.5 Million Yuan Fine: A Heavy Regulatory Blow
The prior notice of administrative penalty provides a complete account of the factual details regarding how Julig Suoju used non-compliant information disclosure to ride market trends and drive up its stock price for speculation.
The actual controller of Julig Suoju is the Yangzi family. The company's main business is the manufacturing of traditional rigging and lifting equipment, having only a very weak connection to the aerospace industry.
However, from December 2025 to early January 2026, several investors inquired on the interactive platform about Julig Suoju's aerospace supporting products, supply proportions, and satellite applications. The company repeatedly responded, stating it had supplied capture arms, test cables, and other products for domestic reusable rockets, and that its related rigging products were used in rocket transportation, launch testing, and ground recovery processes.
By deliberately amplifying expectations related to its commercial aerospace business and being labeled a "commercial aerospace concept stock," Julig Suoju's share price soared. The company once became a hot "rocket recovery concept stock," with its price increasing by over 240% at its peak during that period and repeatedly triggering abnormal volatility alerts.
Under pressure from regulators, Julig Suoju belatedly issued a clarification announcement on February 11, 2026, admitting that its cumulative commercial aerospace orders for 2025 amounted to less than 10 million yuan, accounting for less than 0.5% of its annual revenue.
On May 15, Julig Suoju announced that the CSRC had decided to investigate the company for suspected violations related to misleading information disclosure, causing widespread market concern.
Now, with the Hebei Bureau's administrative penalty officially issued, the matter has reached a conclusion. The Hebei Bureau determined that when Julig Suoju replied on the interactive platform regarding the hot market topic of commercial aerospace, it failed to truthfully disclose key information such as product implementation, intellectual property, order scale, and performance impact. These disclosures constituted misleading statements, suspected of violating Article 197, Paragraph 2 of the Securities Law of the People's Republic of China.
The final penalty involves three parties: Julig Suoju Co., Ltd. as the listed company entity, which was ordered to make corrections, given a warning, and fined 4.5 million yuan; the then board secretary Zhang Yun, who led the implementation of the aforementioned misleading statements, was given a warning and fined 3 million yuan; and the then general manager Yang Chao (nephew of Yangzi, son of chairman Yang Jianguo), who failed to perform his duties diligently, was given a warning and fined 2 million yuan. The total fines for the three parties amount to 9.5 million yuan.
A finance professor at Renmin University of China commented that Julig Suoju's penalty for publishing misleading information highlights the regulatory attitude of strict governance over information disclosure. "Information disclosure is a statutory obligation for listed companies and a core focus of regulation. However, false or misleading disclosures harm investors and disrupt the market, and have always been a key target for severe regulatory punishment."
On June 17, CSRC Chairman Wu Qing pointedly stated the regulatory stance of "zero tolerance" towards violations at the 2026 Lujiazui Forum, specifically emphasizing: "We will strictly investigate and punish illegal activities such as riding trends and hyping concepts under the guise of technology, and even market manipulation and insider trading."
"Strict regulation of information disclosure has a dual significance: first, at the administrative level, regulators can directly impose penalties on non-compliant listed companies; second, at the civil level, if false or misleading disclosures cause actual losses to investors, affected shareholders can seek accountability through litigation, which is a key avenue for protecting investor rights," the professor added.
What's Next for the 100,000 Shareholders?
The "accountability" may not end here. Following the regulatory penalty, civil compensation claims by shareholders against Julig Suoju are also being comprehensively advanced.
This round of thematic speculation attracted a hundred thousand retail investors to buy in at high prices, with many suffering substantial real paper losses. As the violation is confirmed by regulators, a large number of deeply trapped shareholders have initiated collective rights protection actions. Several securities rights protection law firms have simultaneously opened channels for registering affected investors.
Julig Suoju's recent speculation attracted a large number of retail investors to enter at high levels. Specifically, the total number of shareholder accounts for Julig Suoju was 134,700 at the end of 2025, which climbed to 235,100 by the end of the first quarter of 2026, adding over 100,400 new retail investors in just a few months.
With the investigation and fine, Julig Suoju's share price has collapsed. As of the close on June 30, Julig Suoju's share price was 10.51 yuan, down more than 50% from its yearly high of 23.99 yuan. This likely means investors who bought at the peak will face significant losses.
Even with the share price halved, the company's price-to-earnings ratio (TTM) still exceeds 600 times. Julig Suoju's performance has long been volatile with weak profitability, making it difficult to support its current high valuation. The company reported losses in both 2023 and 2024. Although it returned to a profit of 17.4364 million yuan in 2025, its annual net profit margin was only 0.68%.
A lawyer from a securities law firm explained that according to the Securities Law of the People's Republic of China and judicial interpretations from the Supreme People's Court, investors who suffer losses due to misleading statements by a listed company have the right to file civil compensation lawsuits.
The lawyer analyzed that affected shareholders can sue to protect their legal rights, and those who meet the conditions should act promptly. For Julig Suoju's misleading statements, the company self-corrected first, followed by the CSRC investigation. Shareholders eligible for compensation claims are those who purchased shares between December 17, 2025, and February 11, 2026, and sold or continued to hold them after February 12, 2026, incurring losses.
"Based on past judicial practice, it has become common for investors to win compensation claims after a listed company is penalized for misleading statements. The targets of the claim can include the listed company, its actual controller the Yangzi family, and its directors, supervisors, and senior management, demanding they bear joint liability for compensation," the lawyer pointed out.
While the substantial fine has sparked heated market discussion, the Yangzi family's continuous reduction of holdings and cash-outs in the capital market over the past decade has also drawn renewed market attention.
Since its IPO in 2010, Julig Suoju has accumulated a total net profit of only 635 million yuan over 16 years. However, the Yangzi family has profited immensely, cashing out over 2.8 billion yuan through share reductions, agreement transfers, and share pledges—a cash-out scale even reaching 4.5 times the company's profits.
It is worth noting that the Julig Group level recently underwent密集人事更迭, with a significant reshuffling of family management.
According to business information, on June 10, 2026, Julig Group Co., Ltd. completed changes to its business registration information. Core founder Yang Jianzhong stepped down as chairman and general manager, retaining only a manager position; Yangzi stepped down as vice chairman, completely exiting the group's senior management lineup; Julig Suoju company chairman Yang Jianguo stepped down as a group director, with several other family veterans simultaneously exiting core management positions.
Facing the triple pressures of personnel changes, regulatory penalties, and shareholder compensation claims, Julig Suoju may be heading into an unprecedented storm.
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