Controversies

SG Micro major shareholder illegally reduces stake; director in short-swing trade, targeted by Shenzhen Stock Exchange and Beijing CSRC

On February 27, 2019, IPV Capital I HK Limited, a shareholder holding more than 5% of SG Micro, reduced 87,500 shares without pre-disclosure 15 trading days in advance, violating its IPO commitment; the Shenzhen Stock Exchange issued ChiNext regulatory letter No. 40 [2019], and the Beijing CSRC issued warning letter No. 156 [2019]; the shareholder apologized and paid 1% of the reduction amount to the company. On May 22, 2019, the account of director and senior executive Zhang Qin (due to his spouse's erroneous operation) sold 2,000 shares and then bought 2,000 shares the same day, constituting short-swing trading and failure to pre-disclose; the Shenzhen Stock Exchange issued a regulatory letter, and the Beijing CSRC issued warning letter No. 111 [2019]. In addition, media reported that in 2025–2026 director Lin Lin reduced about 7.887 million shares and cashed out about RMB 565 million, and was questioned over possible short-swing trading, with no regulatory conclusion seen. Progress: regulatory measures. Subjects: SG Micro Corp., IPV Capital I HK Limited, Zhang Qin (director, senior executive). Scope: share reductions by SG Micro shareholders and directors, supervisors, and senior management.