Yilianzhong Receives Pre-Penalty Notice from Regulators; Affected Investors May Pursue Claims

Deep News
Jun 26

Yilianzhong focuses on digital technology as its foundation, concentrating on key livelihood sectors such as human resources and social security, medical insurance, and public health. The company is dedicated to creating comprehensive overall solutions and product and technology service systems, aiming to reshape the new ecosystem of public health and well-being through digitalization.

According to the Shenwan industry classification (2021), Yilianzhong belongs to the Computer—IT Services II—IT Services III sector.

On May 8, 2024, the company received a "Case Filing Notice" (No.: Zheng Jian Li An Zi 0282024004) issued by the China Securities Regulatory Commission (CSRC). This was due to the company's suspected violation of information disclosure regulations by failing to properly disclose matters such as providing guarantees for related parties.

On June 12, 2026, the company received a "Pre-Penalty Notice" (Xia Zheng Jian Chu Fa Zi [2026] No. 5) issued by the Xiamen Bureau of the CSRC.

The investigation found the main alleged facts of the company's violations are as follows:

First, Yilianzhong failed to timely disclose guarantees provided for related parties, and the relevant periodic reports contained significant omissions.

Second, Yilianzhong failed to timely disclose loans to related parties, and the relevant periodic reports contained significant omissions.

Third, Yilianzhong failed to timely disclose joint loans with related parties, and the relevant periodic reports contained significant omissions.

Fourth, Yilianzhong failed to timely disclose major litigation and arbitration matters, and the relevant periodic reports contained significant omissions.

The company's stock performance following the disclosures is as follows:

Eligibility for Claims: Investors, including both individual and institutional investors, who purchased shares between June 14, 2018, and November 28, 2023, and sold or continued to hold those shares on or after November 29, 2023, may be eligible to file claims.

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