Core Viewpoint - Wantong Development announced that its actual controller and chairman, Wang Yihui, is under investigation by the Beijing Public Security Bureau, which has led to a significant drop in the company's stock price, reaching a limit down of 9.96% on August 18, 2025 [1][3]. Company Announcement - On August 18, 2025, Wantong Development held a temporary board meeting where CEO Qian Jinzhu will act as the chairman and legal representative until Wang Yihui resumes his duties or a new appointment is made [3]. - The company's stock closed at 9.58 yuan per share, with a total market capitalization of 18.1 billion yuan [3][4]. Financial Performance - Wantong Development is expected to report a net loss attributable to shareholders of between 33 million yuan and 22 million yuan for the first half of 2025, with a net loss excluding non-recurring items estimated between 75 million yuan and 64 million yuan [11]. - The company cited macroeconomic factors and a lack of market demand as reasons for its continued losses [11]. Recent Transactions - Wantong Development plans to invest 854 million yuan to acquire a 62.98% stake in Beijing Shudu Information Technology Co., Ltd., which will become a subsidiary and included in the consolidated financial statements [6][7]. - Shudu Technology has reported continuous losses, with a revenue of 16.28 million yuan and a net loss of 35.98 million yuan in the first half of 2025 [7][8]. Regulatory Scrutiny - The Shanghai Stock Exchange has issued an inquiry to Wantong Development regarding the rationale behind the recent acquisition, payment arrangements, and potential insider trading concerns [8]. Company Background - Wantong Development, originally known as Wantong Real Estate, was founded in 1991 and operates in real estate management, development, and digital technology sectors [9].