Former actual controller privately set up billions of yuan in guarantees, ST Yilien Zhong and others may face penalties exceeding 23 million yuan.

On June 12th, ST Yilian announced that the company had received a "Notice of Administrative Penalty" from the Xiamen Securities Regulatory Bureau on the same day. Former controlling shareholder Zhang Xi used the company as a "credit endorsement tool," privately provided guarantees and loans in violation of regulations, concealed litigation and arbitration, leading to significant omissions in timely disclosure and periodic reporting by the company. The Xiamen Securities Regulatory Bureau plans to impose a fine of over 23 million yuan on ST Yilian and others, with Zhang Xi facing a fine of 17.5 million yuan and a lifetime ban from entering the securities market. The company stated that this does not involve mandatory delisting.