Innosilicon and CEO expected to be fined for "riding" the hot topic!

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（Source: V View Financial Reports）

On the 17th, Shenzhen Yingji Xin Technology Co., Ltd. (rights protection) (referred to as “Yingji Xin” or “the Company”) announced that on March 17, 2026, it received the “Administrative Penalty Notice of Prior Notice” (No. [2026] 5) issued by the Shenzhen Regulatory Bureau of the China Securities Regulatory Commission. The bureau plans to fine Yingji Xin and CEO Chen Xin a total of 8 million yuan.

Source: Announcement screenshot

Specifically, Yingji Xin stated that on February 13, 2026, it received the “Notice of Filing” (No.: Zhengjian Filing Zi 00720263) issued by the China Securities Regulatory Commission. Due to suspected violations of information disclosure laws and regulations, such as the Securities Law of the People’s Republic of China and the Administrative Penalty Law of the People’s Republic of China, the CSRC decided to initiate a case against the company. On March 17, 2026, the company received the “Administrative Penalty Notice of Prior Notice” (No. [2026] 5) from the Shenzhen Regulatory Bureau of the CSRC.

The “Administrative Penalty Notice of Prior Notice” shows that, upon investigation, Yingji Xin is suspected of the following illegal facts: On January 5, 2026, Yingji Xin planned to publish a question-and-answer post on the Shanghai Stock Exchange e-Interaction platform about “company’s product progress and future plans in core chips such as brain signal acquisition,” and responded the next day after market close, stating that “the company has entered the brain-machine interface chip field through early investment layout. The IPA1299 launched by the company is an 8-channel, low-noise 24-bit ADC chip, used for high-precision measurement of biological electrical signals, applicable to brain signal acquisition and other brain-machine interface scenarios. The IPA1299 chip has been mass-produced and shipped, with performance parameters comparable to leading overseas chip products.”

The company’s previous reply claimed “entering the brain-machine interface chip field,” and stated that “the IPA1299 launched by the company” has “performance parameters comparable to overseas leading chip products” and that “the IPA1299 chip has been mass-produced and shipped.” However, the company’s brain-machine interface products use a non-invasive technical path, which differs significantly from the invasive dominant technology path abroad. Additionally, 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, which is inconsistent with the claims of “the company launched the IPA1299” and “has been mass-produced and shipped.”

On the morning of January 7, 2026, at 7:48 am, the company issued a “Statement on the Response to Questions on the Shanghai Stock Exchange E-Interaction Platform,” providing additional disclosure on the above situation.

The Shenzhen Securities Regulatory Bureau believes that the relevant information disclosed by Yingji Xin on the interaction platform on January 6 was inaccurate and incomplete, which could have led or may lead investors to make incorrect judgments. After the information disclosure, market attention was triggered, the company’s stock price significantly deviated from market trends, and abnormal fluctuations occurred, which is suspected of violating Article 78, Paragraph 2, and Article 84, Paragraph 1 of the Securities Law, constituting misleading statements illegal under Article 197, Paragraph 2 of the Securities Law.

Chen Xin, as a director and CEO of Yingji Xin, advised, made decisions, and participated in the above misleading disclosures; Huang Hongwei, as chairman and general manager, is responsible for managing the company’s information disclosure work and did not further verify before the misleading information was disclosed; Wu Renchao, as the secretary of the board of directors, reviewed and participated in the disclosure of the misleading information. Chen Xin, Huang Hongwei, and Wu Renchao failed to perform their duties diligently and ensure the truthfulness, accuracy, and completeness of the company’s information disclosure, making them directly responsible for the illegal disclosure.

The above illegal facts are supported by evidence such as relevant information disclosure documents, inquiry records, approval records, and explanations.

Based on the facts, nature, circumstances, and social harm of the illegal acts, in accordance with Article 197, Paragraph 2 of the Securities Law, the Shenzhen Securities Regulatory Bureau intends to decide:

1. Issue a warning to Shenzhen Yingji Xin Technology Co., Ltd. and impose a fine of 4 million yuan;

2. Issue a warning to Chen Xin and impose a fine of 2.1 million yuan;

3. Issue a warning to Huang Hongwei and impose a fine of 1.1 million yuan;

4. Issue a warning to Wu Renchao and impose a fine of 800,000 yuan.

Regarding the impact on the company and risk tips, Yingji Xin states that as of the date of this announcement, the company’s various operations and businesses are proceeding normally. Based on the findings of the “Administrative Penalty Notice of Prior Notice,” the company believes that the illegal information disclosure involved in this case does not involve other risk warning situations or major illegal mandatory delisting conditions stipulated by the Shanghai Stock Exchange STAR Market Listing Rules.

The company’s official website shows that Shenzhen Yingji Xin Technology Co., Ltd. was established on November 20, 2014. It is an IC design company focused on the research, development, and sales of high-performance, high-quality mixed-signal integrated circuit chips. The company successfully 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, smart audio and video chips. Its R&D achievements are widely used in mobile phones, laptops, tablets, TVs, VR, digital cameras, AI hardware systems, mobile power supplies, fast-charging adapters, wireless chargers, consumer electronics, automotive electronics, and many other fields.

In terms of performance, on February 5, Yingji Xin released its 2025 annual performance forecast. The forecast shows that during the reporting period, the company achieved a total operating revenue of 1.612 billion yuan, an increase of 12.65% year-on-year; net profit attributable to the parent company was 177 million yuan, an increase of 42.81% year-on-year.

Regarding the main factors affecting operating performance, Yingji Xin stated that during the reporting period, the company continued to upgrade its product matrix, actively expanded new markets and customer resources. The company’s products in battery management, PMU, new energy, industrial vehicle regulation, and other fields achieved rapid shipment growth, and revenue steadily increased. The company improved its core competitiveness through product structure adjustments, enhanced R&D efficiency, and optimized supply chains, resulting in cost reduction and efficiency improvement. The overall gross profit margin increased compared to the previous year. The implementation of the 2022 equity incentive plan led to a decrease in share-based payment expenses during the period. These factors collectively contributed to the performance changes.

In the secondary market, on the 17th, Yingji Xin closed down 2.82%, at 21.03 yuan per share, with a total market value of 9.122 billion yuan.

(Note: The views expressed are for reference only and do not constitute investment advice. Investment involves risks; please proceed with caution.)

Cover and introductory images sourced from AI-generated graphics.