【Epoch Times News October 21, 2025】On October 20th, Jiujiang Shanshui Technology Co., Ltd. (Shanshui Technology) saw a significant 17.04% drop in its stock price, with concerns raised by investors that the news of the company’s chairman being subjected to coercive measures had been leaked in advance, leading to mass selling.
In an announcement titled “Regarding Significant Company Matters,” Shanshui Technology stated that on October 19th, they received notification from the family of Huang Guorong, the actual controlling shareholder and chairman as well as general manager. The notification revealed that Huang Guorong was subjected to coercive measures due to personal reasons.
In China, coercive measures can include summons, bail pending trial, residential surveillance, detention, and arrest.
The announcement further mentioned, “The attending directors unanimously agreed that Director Wu Xinyan would act on behalf of the company’s chairman and legal representative, as well as perform the duties of a member of the board and general manager.”
Public information indicates that Huang Guorong and Wu Xinyan are married and collectively hold over 45% of the company’s shares, making them the actual controlling shareholders.
Observers noted that Shanshui Technology chose to disclose this significant negative information after the market closed, though there seemed to be some anticipation in the capital market. On October 20th, the company’s stock price opened low and continued to decline, hitting the limit down at one point during the trading session. By the market close, the stock price had plummeted by 17.04% to 22.88 yuan per share, resulting in nearly 1 billion yuan in market capitalization evaporating.
According to post-market data from Sina Finance on October 20th, three trading seats heavily sold Shanshui Technology stocks, with amounts of 35.18 million yuan, 33.29 million yuan, and 21.22 million yuan respectively. On the buying side, three institutional seats appeared, with purchase amounts of 14.39 million yuan, 7.38 million yuan, and 6.18 million yuan.
Securities Star reported that by the market close on October 20, 2025, the turnover rate of Shanshui Technology’s stock had reached 12.95%, with a trading volume of 206,400 lots and a turnover of 481 million yuan. Regarding the fund flows on October 20th, the main funds had a net outflow of 150 million yuan, accounting for 31.16% of the total turnover, while speculative funds had a net inflow of 99.4535 million yuan, accounting for 20.67%, and retail funds had a net inflow of 50.4942 million yuan, accounting for 10.49%.
According to various media outlets including “21st Century Economic Herald”, some investors on social platforms have raised concerns about the chairman being subjected to coercive measures, alleging that the “news was leaked in advance,” leading to insiders selling stocks. Shanshui Technology did not answer inquiries from the “21st Century Economic Herald.”
Public records indicate that Jiujiang Shanshui Technology Co., Ltd. was established in 2012, registered in Jishan Industrial Park, Pengze County, Jiujiang City, Jiangxi Province. The company’s main business focuses on the research and production of dye intermediates, agrochemical intermediates, and pharmaceutical intermediates. It was listed on the Shenzhen Stock Exchange’s Growth Enterprise Market on December 24, 2021.
In the past two years, Shanshui Technology has struggled with stagnant revenue growth. The company’s annual report shows that in 2024, revenue was 505 million yuan, a year-on-year increase of 1.88%, but the net profit attributable to shareholders after deducting non-recurring gains and losses was 60 million yuan, a drop of 47.63%. In the first half of 2025, revenue was 305 million yuan, a year-on-year increase of 23.08%, but the net profit attributable to shareholders after deducting non-recurring gains and losses was 48 million yuan, a decrease of 11.66%.