Lierda: Company and Two Executives Under Investigation for Alleged Information Disclosure Violations

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On the evening of March 13, Beijing Stock Exchange-listed company Lierda Technology Group Co., Ltd. (920249, hereinafter referred to as “Lierda”) issued a major announcement, disclosing that the company, Chairman Ye Wenguang, and Director and General Manager Chen Kai received a “Notice of Filing” from the China Securities Regulatory Commission (CSRC) on the same day. The CSRC is investigating the three individuals for suspected violations of information disclosure laws and regulations, including the Securities Law of the People’s Republic of China and the Administrative Penalty Law of the People’s Republic of China.

Public information shows that Lierda was established on December 19, 2001, headquartered in Hangzhou. It successfully listed on the Beijing Stock Exchange on February 17, 2023. It is a high-tech enterprise focused on IoT product research and development, technological application, and service implementation. Its main business includes IC value-added distribution, IoT modules, and IoT system solutions development, manufacturing, and sales, serving tens of thousands of customers and supporting intelligent upgrades across multiple fields. The company has received honors such as “Zhejiang Province Famous Trademark” and “Zhejiang Province Patent Demonstration Enterprise.”

It is noteworthy that the two core executives, Ye Wenguang and Chen Kai, who are subject to investigation, are not only central to the company’s management but also related by family. Ye Wenguang has served as chairman of the board since 2001, holding positions such as general manager and executive director, and also serves as supervisor and director of several affiliated companies. Chen Kai, as director and general manager, is one of the company’s actual controllers. He is related to Ye Wenguang as a nephew-in-law, with the two jointly controlling the company’s operations, financial accounting, and information disclosure processes. As of the end of the third quarter of 2025, they, through direct and indirect shareholding, together with another actual controller, Chen Yun, control over 70% of the company’s shares.

This is not the first time that CSRC has filed an investigation into Lierda for information disclosure violations. In May 2024, the Zhejiang Securities Regulatory Bureau issued a warning letter to Lierda and related responsible personnel. An investigation found that in the company’s February 2024 disclosure of the 2023 performance brief and forecast, the net profit attributable to the parent was initially estimated at 6.6244 million yuan but was later revised in April to -60.160 million yuan, consistent with the final annual report data. The issues included inaccurate performance disclosures, untimely corrections, and contradictory content in the correction announcements. At that time, Ye Wenguang and Chen Kai, as the company’s main responsible persons, were held primarily responsible for failing to fulfill their diligent and responsible duties, and their records were entered into the integrity archive of the securities and futures market.

The announcement states that during the investigation, Lierda and related parties will actively cooperate with the CSRC’s investigation and strictly fulfill their information disclosure obligations in accordance with laws and regulations. As of now, the CSRC has not disclosed specific details of the disclosure violations, and whether this investigation is related to previous performance disclosure issues remains to be further verified.

Financial data shows that in 2024, Lierda’s net profit attributable to the parent was -108 million yuan, with basic earnings per share of -0.26 yuan. However, in the first three quarters of 2025, the net profit attributable to the parent was 17.4071 million yuan, with basic earnings per share of 0.04 yuan, turning losses into profits.