On August 12, Securities Daily reported that Xinhaiyi was suspected of ten years of related party transactions, and Xinhaiyi was forced to suspend trading. On August 14, Xinhaiyi publicly denied suspected related transactions, pointing out that "the company does not have related party and related transaction information that should be disclosed but has not been disclosed."
But the doubts from the outside world have not subsided. On August 15, August 18, and August 25, Xinhaiyi suffered consecutive trading suspensions.
On August 28, Xinhaiyi made another big move. On the same day, Xinhaiyi successively issued announcements on the purchase of real estate in Qianning, Suzhou and released a draft employee stock ownership plan.
According to the announcement, Xinhaiyi spent more than 100 million yuan to purchase the Suzhou Oriental Gate office building. The unit price of the property it received was about 25,000 yuan per square meter. The unit price of the Oriental Gate office building is shown on professional portals to be 30,000-60,000 yuan per square meter.
As early as February 15 this year, Xinhaiyi announced that its subsidiary company had signed a nearly 30 million yuan supply contract with the developer of Oriental Gate, Suzhou Qianning Real Estate Co., Ltd. (hereinafter referred to as "Suzhou Qianning"). Xinhaiyi was questioned. Therefore, he enjoyed a generous discount.
On September 4, Xu Lei, secretary of the Board of Directors of Xinhaiyi, responded to reporters by saying that the purchase of Oriental Gate was to meet the company’s demand for office space at the company’s headquarters, because the purchase quantity was large and had a certain significance. The price is slightly preferential, but the price is market pricing. At the same time, he emphasized that the company has no relationship with Qianning Real Estate. Selling goods to it and purchasing office buildings are normal sales and purchases, and do not involve related transactions. There is no relationship between the purchase of houses and other matters. Related.
On September 2, the sales staff of Oriental Gate also confirmed to reporters that the floor area purchased by Xinhaiyi is relatively large and is sold on a per-floor basis. It is not surprising that there is a slight discount. "The general price of office buildings is around 30,000 yuan. "The above-mentioned person said.
The reporter checked the office buildings in the surrounding areas of Oriental Gate and found that the price of Xinhaiyisu shopping mall is about one-third higher than the surrounding price.
According to Xinhaiyi Zhongbao, its net profit attributable to shareholders of the listed company in the first half of the year was 56.7 million yuan. If the government subsidy of 35.18 million yuan is deducted, the profit in the first half of the year was only more than 20 million yuan.
Based on this calculation, Xinhaiyi spent 101.57 million yuan to purchase office buildings, which is equivalent to nearly twice the profit in the first half of this year.
Spending 100 million yuan to purchase office buildings
On September 2, the breeze was blowing, and in the Jinji Lake West Business District in Suzhou, the huge Oriental Gate towered into the clouds. The landmark building, known by locals as the "Qiuku Gate", is currently being installed with glass curtain walls.
On August 26, Xinhaiyi passed a resolution of the board of directors to purchase commercial housing from Suzhou Qianning for 101.57 million yuan in Room 2-2801, Building 1-2, Public Security Building, and Room 2-2901, Building 1-2, Public Security Building, Dongfangzhimen Building, with a total construction area of 4,062.67 square meters. According to the announcement, the unit price per square meter of the standard floor of the property is 25,000 yuan. Xinhaiyi signed a letter of intent to subscribe with Suzhou Qianning on the same day.
Xinhaiyi claims that purchasing real estate will help improve the company’s working environment, enhance its external image, standardize company operations, etc., and is not a risky investment.
The reporter learned that the Gate of the East is located in the west of Jinji Lake and is currently the core CBD area in Suzhou Industrial Park.
In 2004, Suzhou Qianning won the land price of this project equivalent to 11.04 million yuan/mu, with a total price of about 400 million yuan, setting a record for the unit price of land transfer in Suzhou Industrial Park at that time.
Public information shows that the unit price of Oriental Gate office buildings ranges from 30,000 yuan to 60,000 yuan, and the unit price of residential buildings ranges from 30,000 yuan to 50,000 yuan.
On September 2, the salesperson of Oriental Gate introduced to reporters a 96-square-meter small office building on the 53rd floor with a unit price of more than 30,000 yuan. The 28th and 29th floors are sold by the floor because their area exceeds 2,000 square meters.
Compared with the surrounding office buildings, the price of Oriental Gate is obviously high. The reporter checked the information of two real estate office buildings in the same location. One is Sino-Singapore Huijin Building, with an average price of 16,000 yuan, and the other is Phoenix Cultural Plaza, located in the Jinji Lake West CBD area, with an office unit price of about 20,000 yuan.
It is worth noting that in February this year, Xinhaiyi's holding subsidiary Suzhou Xinnajing Optoelectronics Co., Ltd. and its wholly-owned subsidiary Suzhou Xinhaiyi Image Technology Co., Ltd. respectively signed the "Suzhou Oriental Gate Project Lighting Supply Contract" with a contract value of no less than 25 million yuan and the "Suzhou Oriental Gate Intelligent Project Procurement Contract" with a contract value of no less than 25 million yuan and a "Suzhou Oriental Gate Intelligent Project Procurement Contract" with Suzhou Qianning.
In other words, first Xinhaiyi became a supplier in Suzhou Qianning, and six months later, Xinhaiyi became a home purchase customer in Suzhou Qianning, and received a preferential price of 25,000 yuan per square meter. Whether the objectively existing "mutually beneficial" behavior between the two was just a coincidence has made the outside world suspicious. However, Xinhai Yizheng's representative, Ms. Li, categorically denied to reporters the connection between the two.
Denies suspected related party transactions
In fact, Xinhaiyi has been facing doubts from the outside world in the past August since it was exposed by Securities Daily as a suspected related party transaction on August 12.
The focus of the outside world is on the complicated related-party transactions between Huafa Technology and Xinhaiyi that last for more than 10 years. Huafa Technology was once accused of misappropriating the interests of listed companies.
Xinhaiyi explained this one by one in the clarification announcement from the perspectives of advance funds, land transfer, product procurement, etc.
However, the reporter reviewed various information and found that Xinhaiyi and Huafa Technology have had very frequent contacts in the past ten years. In 2001, Kehai Company was established. In 2003, Zhang Yibin, the current chairman of Xinhaiyi, sold his equity in Kehai Company, and Kehai Company was later renamed Huafa Technology.
Beginning in 2003, Xinhaiyi began to establish a purchasing relationship with Kehai Company. In August 2003, Xinhaiyi transferred 35% of the equity of Haitian Company to Kehai Company. Subsequently, Kehai Company required Xinhaiyi Company to advance RMB 19.1766 million on its behalf, citing high pressure on land transfer fees.
In 2004, Xinhaiyi signed a contract with Kehai Company to purchase a piece of industrial land and all above- and underground buildings for a total price of 16.1377 million yuan.
Regarding the dealings with Huafa Technology, Xinhaiyi defined it as "normal business behavior" and "market-oriented principles" in the clarification announcement. Xinhaiyi believes that both in form and substance, it does not belong to the related parties defined by the "Shenzhen Stock Exchange [Weibo] Stock Listing Rules" and other laws and regulations. "The company and Huafa Technology can ensure the fairness of normal business relationships such as purchases and sales."
However, behind the multiple suspensions and the issuance of clarification announcements, Xinhaiyi’s expansion map has gradually become clearer.
Previously, Xinhaiyi’s main business was communication network supporting and software and other related businesses. In the past year, Xinhaiyi has deployed in many aspects, and its business involves mobile games, 4G, lithium batteries, e-commerce and other hot market industries. Xinhaiyi intends to improve the previous single main business situation by seeking diversified development across industries.
In 2011, Xinhaiyi controlled Suzhou Xinnajing Company in an attempt to enter the field of LED chips. In the third quarter of this year, all 20 MOCVD units in the first phase of Xinnajing can be mass-produced, with a monthly production capacity of 100,000 pieces.
In the field of mobile game software, Xinhaiyi announced last year that it planned to raise 152 million yuan through a share placement and invest in its subsidiary Yisibo to develop e-commerce and mobile game projects.
The company currently invests in about 10 mobile game projects, more than half of which will be launched this year. The company predicts that nearly 10 products will be officially put into operation this year.
Xinhaiyi stated in the announcement that the company is still in a critical period of transformation and upgrading in the first half of this year, but the company's industrial layout of "big communications" plus "new energy" has begun to show results. It is worth noting that in the first half of this year, Xinhaiyi achieved operating income of 397 million yuan, a year-on-year decrease of 0.5%, of which communications manufacturing operating income was 170 million yuan, a year-on-year decrease of 12.59%. Although the net profit attributable to shareholders of the listed company was 56.697 million yuan, a year-on-year increase of 43.15%, it included a government subsidy of 35.18 million yuan. Based on this calculation, the actual net profit of its main business was only 21.52 million yuan.
Perhaps due to financial pressure, on August 28, Xinhaiyi released a draft employee stock ownership plan, planning to raise 110 million yuan, with a minimum subscription amount of 5 shares for a single employee, which is 50,000 yuan.
The announcement shows that the approximately 110 million yuan raised above will all be used to subscribe for secondary shares in the Xinzhong No. 2 collective plan established by Industrial Securities Asset Management Co., Ltd. The Xinzhong No. 2 collective plan establishes priority shares and secondary shares in a ratio of 2:1, with an upper limit of 340 million shares. Based on the company's latest stock price, the upper limit of the number of company shares that can be purchased and held is approximately 33.5 million shares, accounting for 5.9% of the company's total existing share capital.
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