"Fairy" Lu Xiao Technology Sapphire Shade 3 former executives involved in insider trading were arrested

Luxiao Technology, located in Zhuji, Zhejiang Province, is one of the leading manufacturing companies in the design, development, production and sales of electromagnetic wire products. However, in the past six months, under the impetus of the "sapphire concept", Luxiao Technology has become a "demonstration stock". From December last year to early May this year, the stock price has soared from 9 yuan to 25 yuan. Especially since April 2, Lu Xiao Technology has pulled out many high-end Changyang lines, and the stock price is as mammoth as a rocket. On May 9, the company's share price closed at 24.33 yuan.

Behind the glamorous performance, on May 6, Lu Xiao Technology announced the announcement of the resignation of Dong Shen Cai Shen. The announcement issued by the company on April 29 surprised the market. The secretary-general "Cai Shen was suspected of criminal being detained for criminal detention" and "the reason is unknown." The reporter was informed by the police that Cai Shen’s criminal detention was suspected of “inside trading” and that Lu Xiaohua’s earlier two executives had been taken by the police for suspected insider trading.

A number of sources have revealed to reporters that several executives of Luxiao Technology “have an accident”, which may be related to the sapphire project.

Or insider trading

According to the announcement of Luxiao Technology, the company received a notice from the Economic Investigation Bureau of the Zhejiang Provincial Public Security Bureau on April 26, knowing that the Secretary of the Board of Directors was detained for criminal reasons. The reason is unknown. The announcement said that if there is further information, the company will announce in time. However, there have been rumors that “or involving insider trading”.

After this, Lu Xiao Technology did not respond to Cai Shen’s criminal detention any more, and then waited for the announcement of the resignation of Dong Shen Cai Shen on May 6. In the earlier interviews with other media, the company only responded that “everything is subject to the announcement, and the incident has nothing to do with the company’s operations”.

What the reporter learned is the other side of the case. According to sources close to the task force, the reason why former Secretary-General Cai Shen was detained was suspected of "inside trading." The police also confirmed to the reporter that after the criminal detention of Cai Shen, the family, the company and the CSRC were given written instructions in accordance with the regulations, explaining the reasons for the criminal detention.

Shao Bin, a lawyer from Zhejiang Yuanyou Law Firm, told reporters that the police must be informed in writing according to the formal procedures, and that the police must be clearly informed of the alleged crime, but this does not mean a final conviction. “The company’s announcement stated that it was only received by the police’s criminal detention notice and the cause was unknown. It was intentionally avoided.”

Not only Cai Shen, the reporter was informed that Li Guoqian, former director of Luxiao Technology, and former director and deputy general manager Xu Juying were also suspected of insider trading. At present, Xu Juying has been released on bail and Li Guoqian has approved the arrest. On July 4 last year, Lu Xiao Technology announced that the two had resigned, and they were not announced after being arrested. Some legal persons told reporters that because "the resignation was in the front and was arrested later", the company did not make an announcement similar to that of Cai Shen.

Song Yixin, a senior partner of Shanghai Xinwangwenda Law Firm and a financial, securities and capital market rights lawyer, believes that for serious cases involving insider trading, the secretaries of Dong’s secrets should be explained in the announcement of criminal detention, otherwise there will be “false statements”. . And before the situation of executives being arrested, if it involves insider trading, even if it is to resign first, it should be announced afterwards. Song Yixin said that the company’s announcement should also state whether the suspected crime is an individual act or a gang act to explain to investors.

At present, the director of Lu Xiao Technology’s Board of Directors is temporarily acting on behalf of Lu Xiaojun, and the securities affairs representative Li Chentao said in an interview that “it is not convenient for interviews”. It insisted that "the notice received did not indicate the reason for the detention, and we subsequently passed the investigation with the Economic Investigation Office, but the Economic Investigation Office did not give an answer."

Awkward "sapphire"

According to the news of the Zhejiang police and informed sources, the criminal detention of the former secretary-general of Lu Xiao Technology and the other two former executives were taken to take enforcement measures, and the suspected insider trading was directed to the sapphire project.

What made the company's share price soar is the announcement of Lu Xiao Technology on April 2. Luxiao Technology and Bourne Optics (Huizhou) Co., Ltd. signed the "Agreement on the Establishment of Berne Laughter Sapphire Co., Ltd." on April 1, 2014 to jointly establish Berne Luxiao Sapphire Co., Ltd. ("Bern Lu" Laughter"), engaged in research, development and sales of optical materials and synthetic sapphire synthesis technology. This was interpreted by the market as the "sapphire concept." But what is embarrassing is that Lu Xiao Technology has twice denied it in the sapphire business.

On December 4th and 5th, 2013, there were market rumors that Luxiao Technology will invest 1.1 billion yuan in the sapphire project, and the company's share price has also been on the daily limit for two consecutive days. On December 6 last year, Luxiao Technology issued a clarification announcement that the listed company did not produce sapphire materials business, and the sapphire project with a total investment of 1.1 billion yuan on the online madness company did not match the facts, and this did not prevent the stock price from continuing to soar. In the following six trading days, its share price continued to rise by more than 50%.

Lu Xiao Technology released a clarification announcement on December 16, 2013, clarifying the relationship with Sapphire. This announcement led to a one-month adjustment in the stock price, but the rumors about the company's sapphire project have been heard all the time. It began to climb in late January this year.

Until April 2 this year, the sapphire project that was denied and denied was confirmed by Lu Xiao Technology himself. Berne laughed at 500 million registered capital, and Luxiao Technology invested 200 million in 40%. Bourne laughed at the site of Tongliao, Inner Mongolia. The rumor has also caused the company's share price to appear for five consecutive daily limit. On May 7, Lu Xiao Technology further announced the progress of Berne's construction.

Some securities professionals pointed out that in general, involving listed companies, such as restructuring, acquisitions and other major issues, listed companies will first disclose the notice of notice, if not disclosed, it should be kept confidential. From the post-event analysis of the sapphire project, the company's involvement in the sapphire project has long been leaked.

The reporter also confirmed from the sources close to the CSRC that the CSRC system has completed investigations into the case of Lu Xiao Technology suspected of insider trading and is now referred to the police for further investigation. Since the case has not been closed, the CSRC will not announce the results of the penalty for the time being.

Step on sale

The announcement of the former director of the Lu Xiao Technology, Cai Shen, who was detained in prison, is also quite interesting in time. The company received a notice from the Economic Investigation Bureau of the Zhejiang Public Security Bureau on April 26, but the announcement date was April 29, according to the practice of the stock market, which was actually released after the close on April 28. So what happened in these three days? According to Lu Xiao Technology, the delay in issuing the announcement was due to "the weekend." Lawyer Song Yixin believes that in addition to the designated information publishing media, listed companies can also make announcements on the Internet if they encounter urgent matters on weekends. And April 28 is another Monday of the working day.

The objective reality is that before and after this time node on April 26, Luxiao Technology is undergoing many changes in the stock market.

On April 25, the company's share price fell, and the market speculated that informed sources were informed of the situation and shipped. On this day, the top 5 trading seats sold were Xiangcai Securities Hangzhou Jiaogong Road Sales Department, Soochow Securities Suzhou Xiangcheng Cailian Road Sales Department, Guoxin Securities Shanghai Beijing East Road Sales Department, Hongyuan Securities Shanghai Pubei Road Sales Department and Dongfang Securities Hangzhou Longjing Road Sales Department. These five business departments are basically located in the provinces and cities adjacent to Hangzhou or Zhejiang. Zhejiang local hot money Xiangcai Securities Hangzhou Jiaogong Road Securities Business Department, on April 25, after throwing 4,857,700 yuan, on April 28 this hot money re-shipped 11.2348 million yuan.

However, in the case of the big market crash on April 28, the stock price of Luxiao Technology rose by 9.18% against the trend. According to the transaction data, the non-Zhejiang-based China Merchants Securities and other two institutions have bought more than 50 million yuan to become a "big head."

Yan Yiming, a lawyer who has the title of “the first person in the Chinese securities market to protect rights and interests”, believes that although the stock is suddenly sold, it is impossible to operate the stock price, but it is very likely that the news was received in advance and there is suspicion of insider trading. As for the announcement of the former director’s detention, Yan Yiming also believes that there are major omissions in information disclosure and allegedly “false statements”.

(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

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