On September 21, ZhenCore Technology (688270.SH) announced that its actual controller and chairman, Yu Faxin, had been placed under retention measures by the Huangshi Supervision Commission and is temporarily unable to fulfill his directorial duties. As of the disclosure date, the company’s control rights remain unchanged.
The market reacted strongly to the news. On September 22, ZhenCore Technology’s stock price opened sharply lower, at one point approaching the daily limit-down drop of 20%, and was down over 16% at the time of reporting, with its market capitalization falling to approximately ¥12.4 billion.
The company stated it has not received any official documents regarding an investigation or a request to cooperate with an investigation, and it is unaware of the progress or conclusions of the retention investigation. It will closely monitor the situation and promptly disclose any updates.
ZhenCore Technology emphasized its operations continue normally under its senior management team. During Yu's absence, director Zhang Bing will assume the chairman's duties. The company asserts its governance and internal controls are sound, and this incident is not expected to significantly impact normal operations.
Notably, on September 4, parties acting in concert with Yu Faxin reduced their stake in the company by 3.88% via a block transfer at ¥53.52 per share, lowering their combined holding to 28.74%.
Founded in 2015, ZhenCore Technology is a high-tech enterprise focused on RF front-end chips, microwave modules, and microsystems for wireless communication terminals and phased array payload systems.
Despite the recent event, the company reported strong first-half 2025 results: revenue reached ¥205 million (up 73.64% YoY), and net profit attributable to shareholders soared to ¥62.32 million (a 1006.99% increase YoY). Its stock price had nearly doubled year-to-date before this announcement.
ICgoodFind : While the company states operations are unaffected, the significant stock sell-off reflects market nerves. Future performance hinges on how the situation unfolds and the company's response.
