Wu Zhenlong, the former vice chairman of Datong and the "King of Ximending", was involved in an insider trading case and was brought back for questioning. (Photo by reporter Liu Yongyun)
First published 11-10 01:33
Update time 11-10 08:39
Elite Computer's two transactions of increasing its holdings in Datong stock and selling subsidiaries involved insider trading. Wu Zhenlong, the former vice chairman of Datong, known as the "Ximending King," was suspected of obtaining undisclosed information through a special assistant named Lai, and his children made more than 6 million yuan in profit from buying shares in advance. The Taipei District Prosecutor's Office searched 11 locations yesterday, and in addition to naming Wu and his children as defendants, they also interviewed the "godfather of motherboards" and former chairman of Elite, Jiang Dongjun, who had returned to Elite's business decision-making circle with Wu's support.
Jiang Dongjun once made a name for himself in the motherboard market with his low-price, mass-production strategy. After quitting the elite business in 2007, he switched to real estate. Later, he became a shareholder of Datong and became one of the four major shareholders along with Wang Guangxiang, Wu Zhenlong, and Zheng Wenyi. Wu Zhenlong is known as the "Ximending Land King" and was the vice chairman of Datong. In early 2024, the elite board of directors was reorganized, and Jiang, with Wu's support, participated in the selection of director candidates, regaining operational influence after many years of withdrawal.
This wave of board reorganization coincides with the decision-making time for the first transaction in this case. Elite held an extraordinary meeting of shareholders on January 11, 2024, to re-elect directors in advance, and Datong obtained 3 legal person director representative seats; after investigation, Elite decided the next day to plan to increase its holdings of Datong shares by no more than 4 billion yuan within one year, and announced a major news on the 20th of the same month.
This transaction was funded by the subsidiary Elite, which purchased shares of the parent company Datong. The suspected target of the advance transaction was also Datong. The investigation revealed that a man surnamed Lai, who was also a director of Elite Corporation and Wu Zhenlong's special assistant, was suspected of informing Wu of undisclosed information, and then Wu's relatives and friends bought and sold Datong stocks in advance. Another director named Wang was also suspected of entering the market during the prohibited trading period, making a fabricated profit of about 400,000 yuan.
By June of the same year, the stocks suspected of being traded in advance were replaced by Elite. Elite announced the sale of its wholly-owned Suzhou subsidiary. The transaction amount exceeded RMB 200 million. The buyer was Jiangsu Wuzhong Hi-Tech Venture Capital Co., Ltd. When the investigation became suspicious, Lai Nan once again revealed the news to Wu Zhenlong. Wu's son Wu Junyi and daughter Wu Yiqi were suspected of buying and selling elite stocks in advance, making a total profit of more than 6 million yuan.
The Beijing Inspection Bureau yesterday directed the investigation bureau to search 11 locations and interview relevant personnel. After Wu Zhenlong arrived at Songshan Airport by plane, he was immediately taken back to the Investigation Bureau for interrogation. His son Wu Junyi, daughter Wu Yiqi, and Special Assistant Lai, who is also a director of Elite Computer Corporation, were also interviewed at the same time. The entire case was investigated for insider trading in violation of the Securities and Exchange Act.
"The Godfather of Motherboards" Jiang Dongjun once made a name for himself in the motherboard market with his low-price, mass-production strategy. After quitting Elite in 2007, he switched to real estate. Later, he became a shareholder of Datong and became one of the four major shareholders along with Wang Guangxiang, Wu Zhenlong, and Zheng Wenyi. (Photo by reporter Liu Yongyun)
Wu Junyi, son of Wu Zhenlong. (Photo by reporter Liu Yongyun)
Wu Zhenlong's daughter Wu Yiqi was released on 1 million bail. (Photo by reporter Liu Yongyun)
