Core Viewpoint - The ongoing legal issues surrounding the actual controller of Yongyue Technology, Chen Xiang, have raised concerns about the company's governance and financial performance, as the company continues to report significant losses over the past three and a half years [1][4][8]. Financial Performance - Yongyue Technology reported cumulative net losses of 280 million yuan over the past three and a half years [2][8]. - For the first half of 2025, the company recorded a net loss of 6.1745 million yuan, an improvement compared to a loss of 24.9371 million yuan in the same period last year [3][7]. - The company's revenues for 2022, 2023, and 2024 were 296 million yuan, 338 million yuan, and 370 million yuan, respectively, showing a year-on-year decline of 25.21% in 2022, followed by increases of 13.97% in 2023 and 9.66% in 2024 [7]. Corporate Governance and Legal Issues - Chen Xiang was placed under residential surveillance in September 2024 due to allegations of insider trading and was recently granted bail pending investigation [1][4]. - Chen Xiang resigned from all positions within the company in May 2024, following a series of legal troubles, including a 4 million yuan fine for leaking insider information [5][6]. - The company has stated that Chen Xiang does not hold any positions within the company, and operations continue normally [4]. Shareholding and Pledge Status - The controlling shareholder, Jiangsu Huaying, has a pledge rate of nearly 99%, with 61.5 million shares pledged, accounting for 98.94% of its holdings [8][9]. - The company has indicated that the pledged shares are primarily for supplementing liquidity needs, and measures will be taken if the stock price approaches warning or liquidation levels [9].