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Just last night on September 28, a company announcement completely tore away the last shred of cover: because the controlling shareholder, Jiangxi Electronics Group, had non-operationally occupied funds amounting to as much as 1.692 billion yuan and failed to return them within the prescribed period, the company's shares would be suspended from trading for one day on September 29, and upon resumption would immediately be slapped with a designation, with the abbreviation changed to "ST Lianguang (Rights Protection)." The lawyer team led by Liu Peng of Shanghai Huzi Law Firm is still soliciting affected investors, and those who meet the requirements can still register to seek compensation and recover losses. (Liu Peng Lawyer Column)
Halt and Designation: 1.6 Billion in Occupied Funds Not Repaid
From once being a doubling bull stock in "lasers plus superconductors" to now being ST, this blowup at Lianchuang Optoelectronic actually had traces all along. According to the details disclosed in the announcement, the money flowed out through a highly concealed "trade cloak." A wholly owned subsidiary of Lianchuang Optoelectronic signed trade agreements and paid advance payments to send money to related parties actually controlled by the controlling shareholder. The money went around in a circle and ultimately landed in the pocket of the controlling shareholder, "Electronics Group." This is a typical case of non-operational fund occupation. If it were normal business, it would be operational dealings; but this behavior of using advance payments in name while actually transfusing funds to the major shareholder is a regulatory red line in the A-share market. Even more critically, the controlling shareholder is now facing a debt crisis, and this 1.692 billion yuan cannot be repaid. According to Shanghai Stock Exchange rules, if the occupied amount exceeds 5% of net assets or exceeds 10 million yuan and is not rectified within one month, the company must be designated ST.
The Sword of Investigation Had Already Fallen
In fact, the fuse on this landmine of fund occupation was lit as early as August 4. That evening, Lianchuang Optoelectronic disclosed that the company and actual controller Wu Rui had each received a "Notice of Filing" issued by the China Securities Regulatory Commission. On suspicion of failing to disclose non-operational fund transactions and other illegal acts as required, the CSRC decided to file a case against the company and Wu Rui. Also exposed at the same time was a pile of messes: overdue debts exceeding 500 million yuan, bank accounts frozen amounting to nearly 400 million yuan, and the controlling shareholder's equity being judicially auctioned (and even failing to sell). From the filing in August to now being ST, the stock price has long fallen miserably. Electronics Group is currently mired in a debt crisis, and the listed company shares it holds have been frozen and auctioned, with major uncertainty over its repayment ability. If the fund occupation problem cannot be resolved within a reasonable period, the company will remain in ST status, and both its financing capacity and market credibility will be further constrained.
Investor Claims Are Ongoing
As the investigation progresses, the solicitation for rights protection in securities misrepresentation liability disputes against Lianchuang Optoelectronic is also continuing. Although Lianchuang Optoelectronic's fund occupation was only disclosed after it could no longer be hidden, at the legal level the liability for compensation due to information disclosure violations cannot be escaped. At present, the conditions for its compensation claims are tentatively set as those who bought before August 4, 2026 (inclusive), and sold after August 5, 2026, or still held shares at a loss, can participate in rights protection. The lawyer team uses a full contingency fee arrangement, meaning no lawyer fees are required before compensation is obtained. (Lianchuang Optoelectronic Rights Protection Entry)
Investors are reminded to pay close attention to subsequent company announcements regarding the repayment plan. If the major shareholder truly cannot repay the money, then not only will removing the ST designation be hopeless, but the company may even face a more serious delisting risk.
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