Asiainfo Security Technologies Corp. A

Asiainfo China, a wholly owned subsidiary of Asiainfo Technologies, which is a controlled subsidiary of Asiainfo Security, has been taken to arbitration by Beijing Shangyou Lida Technology over a dispute concerning a procurement contract. The Beijing Arbitration Commission has accepted the case. Shangyou Lida is seeking an award ordering Asiainfo China to pay 123 million yuan for completed goods under the contract, 8.9 million yuan in outstanding payments for requirements analysis and system design, plus overdue interest, legal fees, preservation costs, and preservation insurance premiums, bringing the provisional total to 147 million yuan. Asiainfo Security stated in a filing that if the arbitration outcome is unfavorable, the maximum risk exposure for Asiainfo Technologies would not exceed 119 million yuan, and the maximum impact on net profit attributable to shareholders of the parent company in its consolidated financial statements would not exceed 24.04 million yuan. In the first quarter of 2026, Asiainfo Security reported revenue of 1.211 billion yuan and a net loss attributable to shareholders of the parent company of 186 million yuan.

Tianzhihang is planning to acquire a 62% stake in Shanghai Minimally Invasive Orthopedics Medical Technology Co., Ltd. through a share issuance, along with raising supporting funds, which is expected to constitute a major asset restructuring. Trading in the company's shares will resume on July 30. Jianghuai Micro is set to acquire a 15.50% stake in its holding subsidiary, Jiangyin Jianghuai Fuxin Electronic Materials Co., Ltd., for 1.5024 million yuan, after which it will hold 100% equity. Zhongke Tongda shareholder Wuhan Optics Valley Growth Venture Capital Fund plans to reduce its holdings by no more than 3.4911 million shares, representing no more than 3.00% of total share capital. Hunan Haili's controlling shareholder, Haili Group, increased its holdings by 1.6177 million shares, raising its stake from 23.71% to 24.00%, with the equity change hitting a 1% integer multiple. GigaDevice's actual controller, Zhu Yiming, plans to increase his holdings in the company from December 13, 2026, to July 29, 2027, with the increase amounting to no less than 1 billion yuan. Western Mining reported a first-half net profit attributable to the parent of 4.169 billion yuan, up 123% year-on-year; Chengtun Mining reported a first-half net profit attributable to the parent of 1.804 billion yuan, up 71.37% year-on-year; Hongfa Technology reported a first-half net profit attributable to the parent of 1.156 billion yuan, up 19.89% year-on-year. AsiaInfo Security's holding subsidiary, AsiaInfo China, had bank account funds of 151 million yuan frozen, accounting for 8.71% of the company's latest audited net assets. Bio-chem Technology shareholder Guangyao Zhixin had 37.59 million company shares frozen. Century Huatong shareholders Yaoquru, Yiqusheng, Jiyufan, and Huatong Holdings were ordered by the Zhejiang Securities Regulatory Bureau to take corrective measures and had the matter recorded in their integrity files for failing to fulfill 2020 performance commitment compensation obligations. In response to a Shanghai Stock Exchange annual report inquiry, Yunzhong Technology disclosed that its MLCC business had on-hand orders at the end of June 2026 that surged 831.50% compared to the end of December 2025, but the business remains in a loss-making state. In 2025, its operating revenue was 60.1524 million yuan, accounting for 10.68% of the company's total operating revenue, with products mainly used in the consumer electronics sector and not yet applied in AI computing servers.

Asiainfo Security announced that the bank account of Asiainfo China, a wholly owned subsidiary of its controlling subsidiary Asiainfo Technologies, has been frozen for 151 million yuan, accounting for 8.71 percent of the company's most recent audited net assets. The company's preliminary assessment is that the freeze resulted from a pre-litigation asset preservation application filed by Beijing Shangyoulida Technology Company against Asiainfo China over a contract dispute, with the court ruling a freeze amount of 147 million yuan, which reached 151 million yuan due to duplicate freezes. Asiainfo Security stated that it has not yet received formal legal documents from the court, and the matter will not have a material impact on the company's daily production and operations. The company has been under earnings pressure recently, posting net losses of 446 million yuan and 186 million yuan for the 2025 fiscal year and the first quarter of 2026 respectively. As of the close on July 29, the stock price stood at 11.83 yuan, marking a decline of 39.02 percent since the start of 2026.

Asiainfo Security announced that it plans to terminate its 2026 employee stock ownership plan. The announcement stated that after considering the willingness of plan participants, the market environment, and the company's future development plans, and in order to better protect the interests of the company, shareholders, and employees, the company has decided to terminate the 2026 employee stock ownership plan, along with the accompanying management measures and other documents. In the first quarter of 2026, Asiainfo Security achieved revenue of 1.211 billion yuan and a net loss attributable to the parent company of 186 million yuan.