Yilianzhong Information Technology Co.,Ltd. (ST Yilianzhong, SHE: 300096) has received a formal penalty decision from the China Securities Regulatory Commission (CSRC), and the timeframe for affected investors to file compensation claims is now in its final stages.

The company announced on July 8, 2026, that it had received the "Administrative Penalty Decision" from the Xiamen branch of the CSRC. Legal experts point out that this confirms the facts of the company's false statement violations. While investors can still initiate claims, the statute of limitations is now counting down, a situation that requires special attention.

Lawyers representing investor claims against Yilianzhong have already filed multiple cases with the Xiamen Intermediate People's Court and are awaiting the court's next steps. They are continuing to advance the filing of subsequent cases and are still accepting mandates from other eligible investors.

According to the disclosed penalty decision, the CSRC investigation found that Yilianzhong and its then-controlling shareholder and actual controller, Zhang Xi, committed the following violations:

The company failed to promptly disclose guarantees provided for related parties, and its relevant periodic reports contained major omissions. In October 2018, Zhang Xi privately used Yilianzhong's name to provide a guarantee for a 550 million yuan loan he and a related company, Beijing Mou Real Estate Co., Ltd., obtained from an individual. The guarantee amount represented 71.61% of Yilianzhong's audited net assets for 2017. In May and June 2020, Zhang Xi again privately used the company's name to confirm guarantees for the remaining debt balances. In August 2024, the Beijing Arbitration Commission ruled that Yilianzhong was not liable for these guarantees.

The outstanding balances of these guarantees were reported in the company's annual reports from 2018 to 2022 and its 2023 interim report, representing significant percentages of the disclosed net assets for those periods. According to securities laws, Yilianzhong was obligated to disclose these guarantee matters promptly but did not do so until November 28, 2023.

The company also failed to promptly disclose loans to related parties, and its relevant periodic reports contained major omissions. In February 2018, due to a personal funding shortfall, Zhang Xi privately used Yilianzhong's name to borrow 60 million yuan from Nuo Mou Investment Co., Ltd. The funds were transferred directly to an account of Beijing Mou Real Estate, constituting a non-operating fund occupation by a related party. Zhang Xi repaid part of the loan in April 2018 and the remainder in May 2023.

The outstanding balances of this loan were reported in the company's annual reports from 2018 to 2022, representing certain percentages of the disclosed net assets. Securities laws required prompt disclosure of this loan matter, but the company did not disclose it until November 28, 2023.

Additional violations cited include failing to promptly disclose joint borrowings with related parties and failing to promptly disclose major litigation and arbitration matters, with corresponding major omissions in periodic reports.

Legal professionals specializing in securities claims advise that investors who purchased Yilianzhong shares between June 14, 2018, and November 29, 2023, and sold or continued to hold those shares after November 29, 2023, may still be eligible to file for compensation.