Suqian Liansheng Receives Warning Letter: Concealing Joint Venture Partner's "Shell" Nature, Exaggerating Project Timeline, Capitalizing on "Indium Phosphide Substrate" Concept

On June 16, according to an announcement released by the Shanghai Stock Exchange, Suqian Liansheng (603065) and its then-serving Board Secretary, Xie Longrui, received a regulatory warning.

On June 9, 2026, Suqian Liansheng disclosed its plan to establish a joint venture with Zhu Ronghui and Huizhiguangxin to engage in the R&D and production of indium phosphide substrates. The first phase of the project has a construction period of 10 months, with planned annual output of 120,000 4-6 inch substrates. In response to regulatory inquiries, the company admitted on June 13 that Huizhiguangxin is merely a shareholding platform with no actual business operations, negative net assets, and no personnel; the 10-month period refers only to the estimated time for fixed asset investment and construction, and does not include approval, environmental impact assessment, safety assessment, commissioning, validation, or other procedures, and there is no guarantee that the project will be able to achieve production and generate revenue within 10 months. The company’s initial announcement did not disclose the actual operating condition of the joint venture partner, nor did it adequately warn of the uncertainty of the project timeline. The information disclosure was inaccurate and incomplete, and the risk warnings were insufficient. Only after the inquiry did the company provide additional explanations, which may have misled investors.

Suqian Liansheng violated multiple provisions and was therefore issued a regulatory warning. The regulatory decision requires Suqian Liansheng and its directors and senior management to submit a rectification report within one month and take effective measures to improve information disclosure and standard operational practices.

In the first quarter of 2026, Suqian Liansheng recorded revenue of RMB 323 million and net profit attributable to shareholders of the parent company of RMB 5.44 million.