Less than a year into his new role, Lu Yong, the actual controller, chairman, and CEO of Shiming Technology, has been placed under detention.
On the evening of July 28th, Shiming Technology announced that the company had recently received a notification from Lu Yong’s family, informing them that he had been issued a “Detention Notice” by the QiDong City Supervisory Committee.
The announcement emphasized that Mr. Lu Yong was placed under detention due to matters related to Jiangsu Banbutang Real Estate Co., Ltd., which is a personal affair of Lu Yong and is unrelated to the company. The company’s day-to-day operations are being handled by the senior management team, and the production and operation are running normally. As of the time of the announcement, Shiming Technology had not received any notifications from other authorities.
According to Shiming Technology’s 2024 annual report, Lu Yong, born in 1974, has held various positions in companies such as Jiangsu Fenghui New Energy Development Co., Ltd., Jiangsu Huahui New Energy Co., Ltd., Jiangsu Banbutang Cultural Development Co., Ltd., and Nanjing Fenghui Composite Materials Co., Ltd. Lu Yong took over as the actual controller of Shiming Technology, serving as the chairman and CEO of the company starting from August 7, 2024.
Lu Yong’s detention comes shortly before the one-year mark of his appointment as chairman of Shiming Technology.
According to Tianyan Check, Lu Yong is the legal representative and chairman of Jiangsu Banbutang, a company established in 2018 in Nantong, Jiangsu Province, primarily engaged in real estate. Its shareholders are QiDong Ba Yi Real Estate Development Co., Ltd. and QiDong Hongtai Yongxin Real Estate Co., Ltd., with ownership stakes of 55% and 45% respectively. The company is currently involved in multiple commercial disputes, including disputes over presale contracts and property damage compensation.
Following the news of Lu Yong’s detention, Shiming Technology’s stock plummeted. According to a report by Jiemian News on the 29th, the stock had dropped by over 10% to 15.02 yuan per share, with a market value of 4.843 billion yuan.