Over 3,500 Firms Stripped of High-Tech Status Since 2026, Involving 18 Listed Companies
Since the start of 2026, more than 3,500 companies nationwide have lost their high-tech enterprise status, affecting 18 listed firms or their subsidiaries. Four listed entities—Langzi Co. , Ltd. , Sai Microelectronics, Yicheng New Energy, and Junda Co. —were directly disqualified. Separately, a subsidiary of Yunnan Copper Industry Co. paid RMB 512 million in back taxes and penalties. The surge in disqualifications is attributed to non-compliance with core indicators, voluntary withdrawals, and violations of safety, quality, or environmental regulations.
Since the start of 2026, more than 3,500 companies nationwide have been disqualified from high-tech enterprise status, involving 18 listed companies or their subsidiaries. Among them, four listed entities were directly disqualified: Langzi Co. , Ltd. , Sai Microelectronics, Yicheng New Energy, and Junda Co. Langzi and Sai Microelectronics have issued related announcements, while Yicheng New Energy and Junda have not yet done so. Additionally, 11 listed companies had their controlled subsidiaries disqualified, and three listed companies had their associate companies lose the certification.
Among the listed entities, Sai Microelectronics announced that the company (parent) was disqualified from 2022 high-tech enterprise status, which will not affect previously disclosed financial data. Langzi Co. stated that the specific impact of the disqualification on its operating results requires further clarification from tax authorities. Yicheng New Energy responded that the disqualification of the listed entity has a limited impact on the company. A representative of Junda Co. said that Hainan Junda Automotive Trim Co. currently has no specific production operations and the company will handle the matter according to regulations.
A representative from Shanjin International's securities department responded that the disqualification of its subsidiary Inner Mongolia Yulong Mining Co. has no impact on the income tax rate and no material impact on the listed company. Yulong Mining reapplied for high-tech enterprise status in 2026.
Shenglong Co. s wholly owned subsidiary Luanchuan Longyu Molybdenum Co. was disqualified effective from 2024, and Shenglong did not issue an announcement on this. Shengda Resources' wholly owned subsidiary Chifeng Jindu Mining Co. was also disqualified, and Shengda Resources did not issue a specific announcement. Reviewing Shengda Resources' 2025 financial report, Jindu Mining's income tax rate in 2025 was 25%, compared to 15% in 2024. A representative from China Shenhua Energy's board office said they are not familiar with the disqualification of its subsidiary Guoneng Beidian Shengli Energy Co.
The number of high-tech enterprise disqualifications has grown rapidly in the past one to two years. Reasons include companies failing to continuously meet core indicators, some voluntarily relinquishing the status, and hard compliance red lines such as major safety accidents, quality incidents, or serious environmental violations.