On the evening of August 18th, Beijing Wantong Neo Development Group Co., Ltd. (Wantong Development) announced that the company’s actual controller and chairman, Mr. Wang Yi, has been taken away for investigation by the Beijing Municipal Public Security Bureau.
In the “Announcement on the Detention of the Company’s Actual Controller and Chairman,” Wantong Development stated: “On August 18th, Mr. Wang Yi, the actual controller and chairman of the company, was informed by his family that he had received a detention notice from the Beijing Municipal Public Security Bureau. Mr. Wang Yi is currently assisting the public security authorities in their investigation. According to his family, the investigation does not relate to the daily production and operation of Wantong Development.”
The announcement also mentioned: “The company has not received any investigation documents related to the company from the authorities and is not aware of the progress or conclusion of the investigation.”
On August 18th, Wantong Development’s stock price plummeted at the opening, touching the limit down, and closing at 9.58 yuan per share, a decrease of 9.96%, with a total market value of 18.1 billion yuan.
Public information shows that Beijing Wantong Neo Development Group Co., Ltd. was established on December 30, 1998. Its main business includes real estate development and sales, urban renewal and operation, communication, and digital technology. It is an old A-share real estate company, with its main businesses being real estate sales and property leasing.
Financial reports indicate that in 2022, 2023, and 2024, the company had net losses of -323 million yuan, -390 million yuan, and -457 million yuan respectively. It is expected to incur a loss of 22 to 33 million yuan in the first half of this year.
Furthermore, on August 10, Wantong Development announced its intention to invest 854 million yuan through capital increase and equity transfer to acquire a 62.98% stake in Sudu Technology. After completion, the target company is to become a subsidiary of the listed company. The target company’s main business is integrated circuit chip design. However, based on the data disclosed by Wantong Development, Sudu Technology has been consistently operating at a loss in recent years, and the commercial rationality of its cross-border acquisition has also raised inquiries from the stock exchange.