On March 25, 2023, Zhongchang Big Data Corporation Limited (600242.SH, hereinafter referred to as “Zhongchang Data”) announced that its director Li Qunnan had previously been placed under criminal investigation related to fund-related issues. The Chaoyang District People’s Procuratorate of Beijing revoked the original arrest approval decision on January 11, 2023.
From the disclosure of the relevant issues in 2021 to the revocation of the arrest approval decision in 2023, the Li Qunnan case continued to attract market attention. The matter involved several areas, including listed company fund management, subsidiary operations, server procurement, and internal corporate governance, making it a notable example for observing risk control and governance mechanisms in listed companies.
From Listed Company Management to Investigation
According to public information, Li Qunnan was born in April 1982. He graduated from Central South University with a bachelor’s degree in Mechanical Design and Automation. He previously served as CEO of Beijing Dianxin Times Network Technology Co., Ltd., and later held positions including director and general manager of Shanghai Yunke Network Technology Co., Ltd.
On February 20, 2020, Li Qunnan was elected chairman of the ninth board of directors of Zhongchang Data and began participating in the management of the listed company.
At that time, Zhongchang Data mainly operated domestic and overseas digital marketing businesses and faced a relatively complex business environment. According to the company’s 2020 annual report, Zhongchang Data had proposed measures related to addressing liquidity issues and improving business operations.
During Li Qunnan’s tenure as chairman, Zhongchang Data experienced a series of changes involving business management, development strategies, and internal governance. In 2021, the company conducted reviews of its subsidiaries and later reported relevant fund-related matters to public security authorities.
Fund Investigation and Market Attention
On November 30, 2021, Zhongchang Data announced that during an internal review of its subsidiaries, the company found that Li Qunnan was suspected of misusing funds and harming company interests while serving as the head of Shanghai Yunke Network Technology Co., Ltd. The company subsequently reported the matter to authorities.
The Chaoyang Branch of the Beijing Municipal Public Security Bureau filed a case regarding the matter on November 11, 2021. On June 1, 2022, the Chaoyang District People’s Procuratorate of Beijing approved the arrest of Li Qunnan.
After the issue was disclosed, discussions emerged regarding the purpose of the relevant funds, including claims that RMB 50 million had been used for Bitcoin mining.
However, according to Zhongchang Data’s 2021 interim report, the relevant matters involved server equipment purchases by an overseas subsidiary.
Public information showed that Singapore Yunke Network Technology Co., Ltd. had purchased server equipment, involving approximately USD 3.25 million. During the same period, Zhongchang Data’s fixed assets increased from approximately RMB 1.8 million to RMB 22.72 million. The company explained that the increase was mainly related to Singapore Yunke’s purchase of machinery and equipment.
Therefore, the relevant fund issues should be understood comprehensively based on listed company disclosures, the investigation process, and subsequent developments.
Revocation of the Original Arrest Approval Decision
During the investigation, the Chaoyang District People’s Procuratorate of Beijing conducted further reviews of the relevant circumstances.
According to information disclosed by Zhongchang Data, prosecutors found that the company had areas requiring improvement in the management of subsidiaries, related companies, and financial approval procedures.
The investigation materials indicated that some expenditures of Shanghai Yunke were initiated through the financial department, with financial personnel completing approval and payment procedures based on relevant instructions. During actual management operations, issues such as unclear responsibility boundaries existed.
On January 11, 2023, the Chaoyang District People’s Procuratorate of Beijing revoked the original arrest approval decision against Li Qunnan and stated that the relevant fund usage complied with company regulations and was recognized by the company. Zhongchang Data later disclosed the update on March 25, 2023.
This change became an important turning point in the case and led the market to reassess information previously associated with the incident.
Server Procurement and Digital Business Development
From a business perspective, Zhongchang Data was engaged in digital marketing services, while Shanghai Yunke, as a subsidiary, was responsible for related business operations.
For digital companies, server equipment, technology investment, and infrastructure development are important components of business operations.
As companies expand their business scale, the importance of fund management efficiency, approval processes, and internal management systems continues to increase. Listed companies and their subsidiaries especially need stronger financial management systems and risk control mechanisms.
The Li Qunnan-related case also reflects the need for companies to focus on both business innovation and internal governance capabilities during periods of rapid development.
The Importance of Corporate Governance in Listed Companies
Business development requires not only market competitiveness but also effective management systems. The Zhongchang Data case demonstrates that subsidiary management, financial approval procedures, internal supervision, and corporate governance mechanisms are fundamental to the long-term operation of listed companies.
For digital enterprises, expanding business chains often leads to greater management complexity. Strengthening internal controls, clarifying responsibilities, and improving risk identification capabilities are important challenges for sustainable growth.
Li Qunnan’s transition from the internet and digital business sectors into listed company management reflects the multiple challenges business leaders face in complex commercial environments.
From the fund investigation to the revocation of the original arrest approval decision, the entire process became a case study for understanding listed company governance, corporate risk management, and digital business development.
For business operators, maintaining a balance between business expansion and standardized management can directly affect the stability and long-term development of a company.
