Another senior executive of a listed company has landed in trouble, and a high-flying stock that has doubled in price has been hit by an insider trading scandal.
A high-flying stock whose share price has soared by over 200% within the year has suddenly encountered a major negative event.
After market close on September 7, Shenjian Co., Ltd. released an announcement that Wu Deqing, the company's deputy general manager, received the *Case Filing Notice* issued by the China Securities Regulatory Commission on the same day, and was officially placed under investigation on suspicion of insider trading. The company downplayed the matter in the announcement, stating that all business operations are proceeding normally, Wu Deqing will actively cooperate with the investigation, and subsequent progress will be disclosed in accordance with relevant regulations. However, the market is well aware that at a time when the share price is already weak, the exposure of insider trading involving a senior executive is by no means a trivial matter.
Wu Deqing is a long-serving employee of Shenjian Co., Ltd., who has been rooted in the company for many years and worked his way up from the front line of technical work. Public information shows that he was born in 1968, with a background in resin synthesis technology, has been deeply engaged in the industry for decades, won the Science and Technology Progress Award of Anhui Province and Wuhu City, and has published papers in professional journals. After joining Shenjian Co., Ltd., he has served as production section chief, director of the Technology Center, supervisor and other positions, and has long been the head of the company's technology center, recognized as a core technical backbone within the company. It was not until February this year that Wu Deqing was elected as the deputy general manager of the company, having been in the position for just over 7 months in total. In 2025, he received a pre-tax annual salary of RMB 476,800 from the company.
Many people got to know Shenjian Co., Ltd. because of the recently hyped commercial aerospace concept. This company has a solid foundation, whose predecessor was the Second Artillery Shenjian Chemical Plant established in 1988. It was listed on the Shenzhen Stock Exchange as early as 2010. Last July, its actual controller was changed to the Wuhu Municipal State-owned Assets Supervision and Administration Commission, making it an enterprise backed by state-owned assets. Now the company follows a dual-main-business development path: on the one hand, its long-standing business is chemical new materials, producing polyester resin for powder coatings, which is a leading player in China, with production bases in Wuhu, Huangshan and Zhuhai, an annual production capacity of 320,000 tons, and its clients are international coating giants such as AkzoNobel and PPG; on the other hand, it is the high-end equipment manufacturing that is highly hyped by the market, producing aerospace tooling molds, aircraft radar covers, satellite composite material parts, and supplying to main aircraft manufacturers such as Shenyang Aircraft Corporation and Xi'an Aircraft Industrial Corporation. However, few people have delved into the fact that its total revenue related to commercial aerospace in 2025 was only RMB 3.7124 million, accounting for less than 1% of the total operating revenue.
The concept is wildly hyped, while the fundamentals are continuously declining. In the whole year of 2025, Shenjian Co., Ltd. achieved operating revenue of RMB 2.419 billion, with almost no year-on-year growth, and the attributable net profit to shareholders was only RMB 13.2982 million, down by more than 60% year on year; the non-recurring profit and loss deducted net profit was even more dismal, only RMB 8.0856 million, down nearly 75% year on year. In the first half of 2026, its performance directly plunged: the operating revenue was RMB 1.158 billion, with a growth rate of only 0.25% which was almost stagnant, and the attributable net profit to shareholders directly lost RMB 31.2039 million, down 232.24% year on year. This is also the first time the company has recorded a loss in the first half year since its listing. The company attributed the reasons to the "volume increasing while price decreasing" price war in the chemical sector, the decline in revenue of the high-end equipment business, plus the substantial increase in financial expenses. To put it bluntly, its main business is getting more and more difficult to make profits, and the valuation is entirely supported by the hyped concepts.
However, with such fundamentals, the stock was still driven up by capital to more than double its price. Since mid-December 2025, riding the boom of commercial aerospace, satellite navigation and low-altitude economy, the share price of Shenjian Co., Ltd. has surged all the way. From December 18 to April 22 this year, the cumulative increase in just over four months exceeded 200%, with consecutive daily limit-ups, multiple triggers of abnormal share price fluctuations, and the market value peaked at nearly RMB 20 billion. The company had urgently released an abnormal transaction announcement in early February, repeatedly emphasizing that the aerospace business accounts for a very low proportion and there will be no major changes in the short term, but at that time the market sentiment was overheated, and all risk warnings were ignored.
When the tide recedes, you find out who has been swimming naked. Calculated from the stage high in late April, the share price of Shenjian Co., Ltd. has been drifting down for more than four months. As of the close on September 7, the share price stood at 10.36 yuan per share, directly halved from the highest point, with a current market value of about RMB 9.9 billion. The day before the news of the case filing was exposed, the company's share price fell by 2.26%, with a turnover rate as high as 8.74%, indicating a very obvious divergence between bulls and bears. After the market opened on September 8, the share price once dipped to 9.84 yuan, then was pulled up, with an intraday amplitude of more than 6%, and the fierce capital game was clearly visible.
From a doubling bull stock chased by everyone to the deputy general manager being filed for investigation on suspicion of insider trading, the plot of Shenjian Co., Ltd. in the past half year is more ups and downs than its K-line trend. How much information this investigation will eventually uncover, and where the share price will go amid divergences, you may wish to read on.
Source: Star River Business Observation
This article is published with authorization from 36Kr, originally from "ZAKER Finance".