Zheng Quan Shi Bao·2025-08-08 14:25Core Viewpoint - Jihua Group (601718) has been placed under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws, coinciding with a significant surge in its stock price, which has seen a cumulative increase of over 60% in the past 31 trading days [1][3][4]. Group 1: Investigation and Stock Performance - The company received a notice of investigation from the CSRC due to alleged information disclosure violations [3]. - Jihua Group's stock has experienced consecutive trading halts, marking its fifth and sixth trading halts in the last 31 days, with a total increase of over 60% during this period [4]. - The trading volume for Jihua Group reached 19.5 billion yuan and 28.45 billion yuan in the last two trading days, indicating strong investor interest [4]. Group 2: Business Operations and Clarifications - Jihua Group stated that all its business operations are normal and that it will cooperate with the CSRC during the investigation while adhering to relevant disclosure obligations [4]. - The company clarified that its main business involves the research, production, and sales of workwear, safety shoes, textile dyeing, and protective equipment, and it does not currently engage in the brain-computer interface sector [7][8]. Group 3: Historical Context and Financials - In November of the previous year, Jihua Group was criticized by the Shanghai Stock Exchange for failing to disclose relevant borrowing matters in a timely manner [10]. - The company has a total market capitalization of 23.2 billion yuan, with an expected net loss of 60 million to 80 million yuan for the first half of 2025 [11].