Xingmin ITS(SZ:002355) Hua Xia Shi Bao·2025-04-19 08:50Core Viewpoint - The China Securities Regulatory Commission (CSRC) has imposed administrative penalties on former executives of Xingmin Zhitong for insider trading, highlighting the importance of maintaining market fairness and investor confidence [2][5][7]. Group 1: Insider Trading Case - The CSRC disclosed that Zhao Feng, former chairman, and other executives engaged in insider trading by selling shares before the announcement of the termination of a restructuring plan, resulting in significant financial gains [2][3]. - Zhao Feng avoided losses of approximately 1.75 million yuan, while other executives, Cui Changsheng and Zhao Ping, avoided losses of about 520,000 yuan and 4.39 million yuan, respectively [3][6]. - The total penalties imposed on the three individuals exceeded 43 million yuan, including confiscation of illegal gains and fines [6]. Group 2: Company Background and Restructuring - Xingmin Zhitong, established in December 1999, is based in Longkou City, Shandong Province, and specializes in wheel production and intelligent connected vehicle hardware and data services [3]. - The company attempted a restructuring starting in May 2021 to acquire a 50.29% stake in Wuhan Zhongke Xinwei Information Technology Co., Ltd., but the deal ultimately failed in February 2022 due to a lack of agreement among parties [3][4]. Group 3: Market Impact and Regulatory Response - Following the announcement of the restructuring termination, Xingmin Zhitong's stock price fell from 5.46 yuan per share to 3.56 yuan, a decline of nearly 35% over two months [4]. - The CSRC emphasized its commitment to combating insider trading and market manipulation to protect investor rights and maintain market integrity [7][8].