Controversies

Company and executives fined total RMB 7.5 million for misleading statements in 'brain-computer interface' hype

On January 6, 2026, Yahuilong announced a strategic cooperation framework agreement with Shenzhen Brain-Computer Xinglian, saying the counterpart was 'deeply engaged in both non-invasive and invasive technology paths' and had developed EEG acquisition and analysis devices, sleep aids, and other products; a supplementary announcement still did not disclose the true situation. Investigation found that Brain-Computer Xinglian had only non-invasive technology; only its vagus nerve stimulator had a prototype, which was still in the preparation stage for Class II medical device registration; the other products had no prototypes; the so-called orders were only framework agreements. After the announcement, the share price deviated significantly and fluctuated abnormally. In the previous quarter, the actual controller had cashed out about RMB 84.457 million. The Shanghai Stock Exchange issued a regulatory warning on January 7; the CSRC opened an investigation, and the Shenzhen CSRC Bureau determined that the statements constituted misleading statements, ordered correction, fined the company RMB 4 million, chairman Hu Kunhui RMB 2 million, and board secretary Wang Mingyang RMB 1.5 million; investors may file compensation claims.