Repeated disclosures contain "hidden issues" - Yahui Long's association with the "brain-computer interface" concept leads to regulatory penalties

Aihuilong (688575.SH)'s quick crossover into the brain-computer interface concept ultimately evolved into a regulatory accountability case.

The company announced last night that it received a “Preliminary Administrative Penalty Notice” from the Shenzhen Regulatory Bureau of the China Securities Regulatory Commission. Due to suspected violations of information disclosure laws and regulations, the company and relevant responsible persons are proposed to be fined a total of 7.5 million yuan.

Aihuilong’s suspected illegal disclosure is not a single information flaw but a continuous deviation in disclosure across the initial announcement, supplementary announcement, and inquiry responses.

On January 6th at 5 p.m., the company voluntarily disclosed a “Strategic Cooperation Framework Agreement” with Shenzhen Brain-Computer Starlink Technology Co., Ltd. (“Brain-Computer Starlink”). The announcement stated that the partner “deeply cultivates both non-invasive and invasive dual technical paths” and has developed products such as EEG acquisition analyzers, brain-computer interface sleep aids, sleep monitors, and vagus nerve stimulators. This statement quickly strengthened market expectations of its entry into the brain-computer interface track.

However, regulatory investigations found that the above description was significantly inconsistent with the actual situation: Brain-Computer Starlink only involves non-invasive technology paths and has no invasive layout; among the four products, only the vagus nerve stimulator has a prototype and is in the registration preparation stage, while the other products have not yet formed prototypes and are still in early R&D stages.

At 9 p.m. that day, the company issued a supplementary announcement stating that the relevant products “have not yet entered the registration filing stage,” but failed to disclose key facts—EEG analyzers have no prototypes and are only in component testing; sleep aids and sleep monitors rely on the former and are part of long-term planning, lacking substantial R&D foundation.

This disclosure prompted inquiries from the Shanghai Stock Exchange. On January 7th, in response to the SSE inquiry letter, the company still used the vague statement “have not yet entered the registration filing stage” and also disclosed that Brain-Computer Starlink “has existing orders.” However, Shenzhen CSRC investigations revealed that these orders are framework cooperation arrangements with no actual sales, and the related statements were inconsistent with facts.

Based on the above, regulators believe that the company’s relevant information disclosures were “inaccurate and incomplete,” enough to mislead investors’ decisions, and after the disclosures, the company’s stock price significantly deviated from market trends. According to relevant provisions of the Securities Law, the Shenzhen CSRC intends to order the company to correct, issue a warning, and impose a fine of 4 million yuan; fines of 2 million yuan and 1.5 million yuan are proposed for Chairman Hu Kuanhui and Secretary Wang Mingyang, respectively.

From the timeline, this incident exhibits typical “hotspot-driven” characteristics.

In early January 2026, brain-computer interfaces became one of the more closely watched tech tracks in A-shares. Against this background, Aihuilong announced cooperation with Brain-Computer Starlink to enter the central nervous system disease-related field. Before the announcement, the company’s stock price already showed abnormal movements: on January 6th, closing up 6.52%, with significantly increased trading volume compared to the previous day, and the next day opening nearly 10% higher during intraday trading.

However, considering the trading structure and cooperation basis, there remain certain uncertainties. Public information shows that Brain-Computer Starlink was established in September 2025, with a registered capital of 5 million yuan, and its registered address is the same as Aihuilong; Aihuilong indirectly holds about 4% of its shares through related parties, and both have related relationships. Meanwhile, its controlling shareholder is also a newly established entity, and the overall technical and product system has not yet matured.

Financial data indicates that Aihuilong’s revenue in the first three quarters of 2025 decreased by 7.69% year-on-year, and net profit dropped over 70%; the full-year performance quick report shows revenue down 10.07% and net profit attributable to the parent down 92.03%. Amidst declining performance, Aihuilong promoted brain-computer interface cooperation and made relatively optimistic statements about technological and commercialization prospects in disclosures, objectively amplifying market expectations.

(Source: Cailian Press)