On Thursday evening, A-share listed company Guao Technology suddenly announced that the company’s controlling shareholder, Chen Chongjun, has been criminally detained.
According to the announcement released by Guao Technology on the evening of April 25, the company recently received a “Detention Notice” issued by the Qingdao Public Security Bureau provided by Chen Chongjun’s family. It was revealed that Chen Chongjun was criminally detained by the Qingdao Public Security Bureau for suspected securities market manipulation.
The announcement also stated that the company’s operations are currently normal. Chen Chongjun, the actual controller of the company, does not hold any position as a director, supervisor, or senior management personnel. His detention is not expected to have a significant impact on the company’s day-to-day operations and will not affect the disclosure of the 2023 annual report.
On the same evening, the Shenzhen Stock Exchange issued an inquiry letter regarding this matter, requesting Guao Technology to provide an explanation and timely disclosure.
During the midday trading session on the 25th, Guao Technology’s stock price experienced a sharp decline, initially rising by 2.5% before falling by 4.13%. By the end of the day, it ultimately closed down by 3.58% at 8.88 yuan, with a trading volume of 297 million yuan. In terms of fund flow data, institutional funds had a net outflow of 53.1258 million yuan, accounting for 17.91% of the total turnover, while speculative funds had a net inflow of 6.5709 million yuan, representing 2.22% of the total turnover, and retail funds had a net inflow of 46.5549 million yuan, which made up 15.7% of the total turnover.
Guao Technology’s third-quarter report for 2023 showed that its main operating income was 433 million yuan, a year-on-year increase of 26.33%. The net profit attributable to the parent company was a loss of 48.7328 million yuan, a decrease of 78.11% year-on-year, and the non-net profit was a loss of 49.3231 million yuan, down by 74.8%.
According to the company’s official website, Shanghai Guao Electronic Technology Co., Ltd. was established in 1996 with a registered capital of 345.752939 million yuan. The company is a high-tech enterprise specializing in providing integrated solutions for intelligent financial systems, financial software information products, and services.