Analysis of the Alleged Information Disclosure Violation in Yahuilong’s Cooperation with Brain-Computer Star Chain

Based on recent public market information and regulatory developments, this article systematically analyzes the alleged information disclosure violation in the cooperation between Yahuilong (Stock Code: 688575.SH) and Brain-Computer Star Chain, and evaluates the authenticity of its R&D investment.

After the market close on January 6, 2026, Yahuilong released the “Announcement on Voluntary Disclosure of the Signing of a Strategic Cooperation Framework Agreement”, disclosing that the company had signed a Strategic Cooperation Framework Agreement with Shenzhen Brain-Computer Star Chain Technology Co., Ltd. (hereinafter referred to as “Brain-Computer Star Chain”), and the two parties would carry out cooperation in product R&D, market promotion, equity investment and other fields [1][2]. On the same day, Yahuilong’s stock price closed up 6.52%, and trading volume increased by 299% compared to the previous trading day [2].

However, the announcement quickly triggered market doubts after its release. On the same evening, the Shanghai Stock Exchange (SSE) issued an inquiry letter to Yahuilong [3]. Subsequently, Yahuilong released a supplementary announcement to correct the previously disclosed content. On the evening of January 7, the SSE issued a regulatory warning decision, giving a regulatory warning to Yahuilong and its then Secretary of the Board of Directors, Wang Mingyang [1][4].

After verification, Yahuilong has the following problems in this information disclosure:

The original announcement claimed that Brain-Computer Star Chain “has deep expertise in both non-invasive and invasive technical paths”, but the supplementary announcement corrected it to “the technical route of the current products under development is non-invasive, and there is no invasive technical layout” [2][4]. There is a substantial difference between these statements, which may mislead investors’ decision-making.

The SSE pointed out that Yahuilong did not fully disclose key concerns of investors such as the synergy, feasibility, and uncertainties of subsequent cooperation [1][2]. Specifically:

• Brain-Computer Star Chain was established in September 2025, has only existed for about 4 months, and has a registered capital of RMB 5 million [2][4]
• Relevant products have not yet entered the registration application stage, and some products are in the early R&D or pre-clinical stage [3]
• The earliest expected time to generate revenue is no earlier than November 2026, and there is uncertainty about the sales performance of the products after launch [2][3]

Given that brain-computer interface was a hot market concept at that time, Yahuilong used expressions such as “has deep expertise in dual technical paths” in the announcement. Coupled with the fact that the products have not yet been commercialized, this may have caused investors to misjudge the actual progress of the cooperation [1][2].

The largest shareholder of Brain-Computer Star Chain is Shenzhen Junao Chuangzhi Technology Co., Ltd. (holding 50% of the shares), natural person Chen Badong holds 30% of the shares, and Shenzhen Huanshengji Biotechnology Co., Ltd. and Shenzhen Junao Huili Technology Partnership each hold 10% of the shares [3]. It is worth noting that Yahuilong indirectly holds 4% of the shares of Brain-Computer Star Chain through Shenzhen Huanshengji Biotechnology Co., Ltd. [3].

According to the company’s announcement, the main products of Brain-Computer Star Chain currently include electroencephalogram (EEG) acquisition and analysis instruments, brain-computer interface sleep aids, brain-computer interface sleep monitors, and vagus nerve stimulators. Among them, except for the vagus nerve stimulator which is in the “preparation stage for registration inspection”, the other products have not yet entered the registration application stage; products in the field of diagnosis of Alzheimer’s disease, autism, and stroke are still in the early R&D or pre-clinical stage [2][3].

The registered address of Brain-Computer Star Chain is exactly the same as Yahuilong’s office address, which has triggered market doubts about its “parasitic” relationship [4]. Against the background of complete dependence on the listed company for physical space and high risk of commingling of personnel, assets and finances, the independence and commercial substance of the cooperation between the two parties have attracted attention.

Yahuilong’s operating performance has been under obvious pressure in recent years:

The data shows that the company’s operating revenue has declined for consecutive years, and the decline in net profit is more significant [2][5]. The sharp decline in performance in the first three quarters of 2025 is mainly affected by two factors: first, the short-term decline in domestic market demand due to industry policies, with the operating revenue of domestic business falling by 13.60% year-on-year; second, the fair value change loss of the shares of Cloud Health Group Co., Ltd. held by the company [2][5].

As of the end of the third quarter of 2025, the company’s book monetary capital is RMB 465 million, and the total accounts receivable and inventory reach RMB 1.171 billion [2][5]. The company’s planned investment in Brain-Computer Star Chain will not exceed RMB 15 million, accounting for a low proportion of its monetary capital [3].

According to public information, as a Sci-Tech Innovation Board (STAR Market) listed company in the in vitro diagnostics (IVD) field, Yahuilong continues to invest in R&D. The company has developed the ANA Intelligent Judgment System based on the Transformer architecture, collaborated with Jiangsu Provincial People’s Hospital to develop the Pancreatic Islet Function Standardized Index (PIFI) Digital Intelligence Platform in the diabetes field, and deployed DeepSeek in the Smart Laboratory iTLA MAX, among others [6]. In the field of neurodegenerative diseases, the company’s ongoing R&D projects such as p-Tau181/217 and Aβ have made substantive progress [7].

1. Rich R&D Pipeline
   : The company’s R&D pipeline covers diagnostic products related to Alzheimer’s disease (such as β-amyloid 1-42/1-40 assay kit, total tau protein assay kit, neurofilament light chain protein assay kit, etc.) [7]

2. Progress in R&D Cooperation
   : The company continues to carry out R&D cooperation with medical institutions, such as the collaboration with Jiangsu Provincial People’s Hospital to develop the Pancreatic Islet Function Standardized Index Platform [6]

3. Recognized Technical Capabilities
   : hs-cTnI was successfully included in the hs-cTn reagent analytical performance reference table updated on the official website of the International Federation of Clinical Chemistry and Laboratory Medicine (IFCC), and the company obtained a national invention patent authorization in the field of kidney disease testing [6]

Based on existing public information, no direct evidence of fraud in Yahuilong’s R&D investment has been found. The company’s R&D investment is basically consistent with the progress of its pipeline, and its core technical capabilities have been recognized by the industry. Financial analysis shows that the company’s financial attitude is relatively conservative, with low debt risk [8]. However, investors still need to pay attention to:

• The rationality of capitalization and expensing of R&D investment
• Whether the actual progress of R&D projects is consistent with the disclosure
• Whether the products under development can complete registration as scheduled

The SSE has given a regulatory warning to Yahuilong and its Secretary of the Board of Directors, Wang Mingyang, requiring the company to submit a rectification report within 1 month after receiving the decision [1][4]. This will have the following impacts on the company:

1. Increased Compliance Costs
   : Need to improve the internal control mechanism for information disclosure
2. Damaged Market Trust
   : The record of information disclosure violations may affect investor confidence
3. Restricted Follow-up Financing
   : Capital operations such as refinancing may be affected

1. Concept Hype Risk
   : The brain-computer interface field has a long commercialization cycle and high uncertainty
2. Sustained Performance Pressure
   : The impact of domestic IVD industry policies continues, and the recovery of the main business remains to be seen
3. Cooperation Implementation Risk
   : There is great uncertainty in the registration and commercialization of Brain-Computer Star Chain’s products
4. Connected Transaction Risk
   : The two parties have shareholding and address affiliations, and the possibility of interest transfer needs to be paid attention to

The fact that Yahuilong is alleged to have violated information disclosure regulations in its cooperation with Brain-Computer Star Chain is basically clear. The company failed to ensure the accuracy and completeness when disclosing cooperation information involving market hotspots, and the risk warnings were insufficient, leading to regulatory measures taken by the SSE. Investors should remain vigilant against such hotspot-chasing information disclosures.

Existing information shows that Yahuilong’s R&D investment is authentic and reasonable to a certain extent, and its R&D pipeline and technical capabilities have been verified to some extent. However, given that the company’s performance is under pressure and it has a record of information disclosure violations, it is recommended that investors remain prudent when evaluating R&D investment, focusing on the actual progress and commercial prospects of R&D projects.

This event reflects Yahuilong’s deficiencies in corporate governance and information disclosure. Against the background of pressure on the company’s main business and a sharp decline in performance, investors should focus on the improvement of the company’s fundamentals rather than short-term fluctuations brought by conceptual cooperation. It is recommended to continue to pay attention to the progress of regulatory rectification and the company’s subsequent performance, and make investment decisions prudently.

[1] STAR Market Daily - Yahuilong and Injoinic Receive Regulatory Warnings (https://www.eet-china.com/mp/a465868.html)

[2] Securities Times - Yahuilong Receives Regulatory Warning for Cross-Border Brain-Computer Interface Cooperation (https://www.stcn.com/article/detail/3577900.html)

[3] National Business Daily - Yahuilong Receives Lightning Inquiry from Regulators for Cross-Border Brain-Computer Interface Cooperation (https://www.nbd.com.cn/articles/2026-01-07/4210232.html)

[4] CLS - Yahuilong Receives Urgent Regulatory Warning from SSE for Brain-Computer Hotspot-Chasing Information Disclosure (https://m.cls.cn/detail/2251294)

[5] Changjiang Business Daily - Yahuilong Receives Three Lightning Inquiries from Regulators for Cross-Border Brain-Computer Interface Cooperation (https://www.xincai.com/article/nhfpwvc1543666)

[6] Eastmoney - Huaan Securities Pharmaceutical Research Report (https://pdf.dfcfw.com/pdf/H301_AP202512171802335830_1.pdf)

[7] CFOclub - Reply Announcement to SSE Inquiry Letter (https://www.cfi.net.cn/p20260107002260.html)

[8] Jinling API - Financial Analysis Data [0]