Fictional brain-machine interface positive news triggers stock price fluctuations; Yingjixin and executives to be fined a total of 8 million yuan

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每经记者｜彭斐 每经编辑｜魏文艺

Due to suspected violations of information disclosure, Innochip (SH688209, stock price 21.03 RMB, market value 9.122 billion RMB) has received regulatory penalties.

On the evening of March 17, Innochip announced that it had received the “Administrative Penalty Notice” issued by the Shenzhen Regulatory Bureau of the China Securities Regulatory Commission (hereinafter referred to as “Shenzhen CSRC”) on the same day. It was found that in early January 2026, Innochip artificially planned a “Q&A” on the Shanghai Stock Exchange’s e-interaction platform to latch onto the popular “brain-computer interface” sector.

Image source: Innochip announcement

The reporter from “Everyday Economic News” (hereinafter referred to as “Everyday Reporter”) noted that in the “Q&A,” Innochip not only exaggerated its chip applications in the brain-computer interface field but also issued misleading statements such as “mass production and shipment,” which caused the company’s stock price to significantly deviate from market trends and exhibit abnormal fluctuations.

In response to this malicious act of illegal speculation using non-statutory disclosure channels, the Shenzhen CSRC plans to issue a total fine of up to 8 million RMB to Innochip and three core executives: Chen Xin, Huang Hongwei, and Wu Renchao.

The “Administrative Penalty Notice” shows that on January 5, 2026, Innochip artificially planned to publish a question on the Shanghai Stock Exchange’s e-interaction platform in the “Q&A” format regarding “the company’s product progress and subsequent plans in core chips for EEG signal acquisition,” and the next day after trading hours, replied that “the company has entered the brain-computer interface chip field through early investment layout. The IPA1299 launched by the company is an 8-channel, low-noise 24-bit ADC chip specifically designed for high-precision measurement of human bioelectric signals, suitable for scenarios related to EEG signal acquisition and other brain-computer interface applications. The IPA1299 chip has been mass-produced and shipped, and its performance parameters can match those of leading overseas chip products.”

At that time, backed by the popularity of the “brain-computer interface” sector, Innochip’s related information disclosure attracted market attention, and its stock price significantly deviated from market trends and exhibited abnormal fluctuations.

The Shenzhen CSRC believes that Innochip’s technical path for brain-computer interface products is non-invasive, which significantly differs from the invasive dominant technology path abroad. Furthermore, the “IPA1299 chip” was not launched solely by Innochip but jointly with its investee company, Jingxin Weier (Changzhou) Electronic Technology Co., Ltd. This product is currently in the market cultivation stage and has not achieved large-scale sales and revenue, which contradicts the description in the reply that “the company launched the IPA1299” and “has been mass-produced and shipped.”

Although Innochip released a supplementary disclosure titled “Announcement on Responses to Issues Related to the Shanghai Stock Exchange’s e-Interaction Platform” on the morning of January 7, 2026, the Shenzhen CSRC believes that the relevant information disclosed by Innochip on January 6 on the interaction platform was inaccurate and incomplete, leading or potentially leading investors to make erroneous judgments. After the relevant information disclosure, it attracted market attention, and the company’s stock price significantly deviated from market trends and exhibited abnormal fluctuations, suspected of violating relevant provisions of the “Securities Law of the People’s Republic of China,” constituting misleading statement violations.

The Everyday Reporter has found that, besides Innochip, several other listed companies have recently faced regulatory scrutiny for misleading information disclosures.

For instance, on the evening of January 13, Rongbai Technology disclosed a major contract announcement with CATL, claiming a total sales amount exceeding 120 billion RMB, after which the company faced a warning and fines from the Ningbo Regulatory Bureau of the China Securities Regulatory Commission due to misleading statements; Yahui Long was ordered to rectify, warned, and fined by the Shenzhen CSRC for disclosing inaccurate and incomplete information in an announcement about signing a strategic cooperation framework agreement with Brain Machine Star Chain on January 6.

According to the “Administrative Penalty Notice,” Chen Xin, as a director and CEO of Innochip, suggested, decided, and participated in the disclosure of the aforementioned misleading information; Huang Hongwei, as chairman and general manager of Innochip, bore management responsibility for the company’s information disclosure work and failed to further verify before the misleading information disclosure; Wu Renchao, as the secretary of the board of Innochip, reviewed and participated in the disclosure of the aforementioned misleading information. These three core executives did not diligently perform their duties and failed to ensure that the company’s information disclosure was true, accurate, and complete, making them directly responsible for Innochip’s information disclosure violations.

Based on the provisions of Article 197, Paragraph 2 of the “Securities Law of the People’s Republic of China,” the Shenzhen CSRC intends to decide to issue a warning to Innochip and impose a fine of 4 million RMB; issue a warning to Chen Xin and impose a fine of 2.1 million RMB; issue a warning to Huang Hongwei and impose a fine of 1.1 million RMB; issue a warning to Wu Renchao and impose a fine of 800,000 RMB. The total proposed penalty amount for the company and the three executives is up to 8 million RMB.

The Everyday Reporter noted that just a month before this penalty storm, Innochip had submitted an impressive annual performance report—achieving total operating revenue of approximately 1.612 billion RMB in 2025, a year-on-year increase of 12.65%; net profit attributable to the parent company of approximately 177 million RMB, a year-on-year increase of 42.81%. The rapid growth in the company’s performance is mainly attributed to the rapid increase in shipment volumes in various fields such as battery management, new energy, and industrial automotive regulations, as well as the overall gross profit margin rising due to cost reduction and efficiency improvement.

Image source: Innochip 2025 Annual Performance Report

In the announcement, Innochip expressed its sincere apologies to investors and stated that it would seriously learn from the experience, strengthen the standardization of internal governance, and improve the quality of information disclosure. Currently, all of the company’s business activities are operating normally, and the information disclosure violations involved in this case do not touch upon other risk warning situations and major illegal mandatory delisting situations stipulated in the “Shanghai Stock Exchange Science and Technology Innovation Board Stock Listing Rules.”

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Cover image source: Liu Guomei