Summary of Key Points
Wang Jue, the secretary of the board at Lexin Technology, received a compensation of over ten million yuan, consisting of a salary of 1.75 million yuan and the market value of her shares (worth 13 million yuan). However, she made two consecutive low-level mistakes related to information disclosure violations: important matters that should have been announced separately (such as spending 437 million yuan on a building and acquiring control of another company) were hidden within other documents to avoid market attention. This situation reflects a slowdown in the company's fundamental growth and increased financial pressure. As Wang Jue's salary is linked to the company's performance and stock price, she has shifted from being a guardian of compliance to an accomplice in shaping the company's narrative, ultimately leading to regulatory penalties.
1. The Contrast Between High Salary and Violations: Receiving Top Pay, Yet Failing to Maintain Basic Standards
Wang Jue’s salary is among the highest in the industry—rising from 1.33 million yuan in 2021 to 1.75 million yuan in 2025 (a 31% increase over five years), and her shareholding is worth over 13 million yuan, making her one of the best-paid secretaries in the semiconductor industry. Yet, this high salary has not prevented her from violating regulations. The information disclosure tasks that should have been her responsibility were neglected on both occasions:
- According to regulations, significant asset purchases (such as spending over 400 million yuan on a building) must be announced separately, but Wang Jue concealed these details in the private placement report and only corrected them after one and a half months.
- The acquisition of another company met the disclosure requirements, but it was only mentioned briefly in the semi-annual report without a separate announcement.
In short, despite receiving such a substantial reward, she failed to perform her most basic duties.
2. “Free-Riding” on Information Disclosure: Hiding Important Matters to Avoid Market Concerns
“Free-riding” on information disclosure means hiding important details within less significant documents to avoid drawing attention to them. Here are two specific examples of her violations:
- Hiding the 437 million yuan building purchase in the private placement report: In March 2025, the board approved the use of funds to buy a research and development building for 437 million yuan, but this was only mentioned briefly in the feasibility report without a separate announcement. Investors were unaware that the company was spending such a large amount until one and a half months later.
- Concealing the company acquisition: The acquisition agreement was signed in April 2024, and the acquired company met the disclosure criteria, but it was only mentioned in the semi-annual report without a separate announcement.
The reason for this behavior is that a separate announcement would have immediately raised concerns about the company’s spending and potential mergers and acquisitions, such as whether it had enough funds or if there were any risks involved. By hiding the information, she aimed to reduce market scrutiny and maintain the image of good company performance.
3. Behind the Violations: The Company’s Fundamental Problems Are Emerging
Lexin Technology’s performance in 2025 was decent (revenue increased by 27%, and profits increased by 46%), but the first quarter of 2026 saw a sharp decline:
- Revenue growth slowed from 27% to 16%.
- Operating cash flow plummeted from 523 million yuan to 3.41 million yuan (a decrease of 95%).
- Inventory increased from 470 million yuan to 740 million yuan (a 57% increase) due to the anticipation of rising raw material prices, which led to excessive stockpiling and a significant strain on funds.
In this context, if the company had announced the building purchase and acquisition separately, investors would have been concerned about its financial health, such as whether it could afford such expenses and how it would manage the inventory backlog. Therefore, Wang Jue chose to hide the information to avoid negative market reactions.
4. Why a Qualified Secretary Made Such Mistakes?
Wang Jue is no novice: She holds a bachelor’s degree in economics from Fudan University and an EMBA from CEIBS and has experience in auditing at EY and working for investment firms before joining Lexin Technology in 2018. So, what caused her to make such basic errors?
The root cause lies in the imbalance between incentives and constraints. Her salary and shareholding value are linked to the company’s performance and stock price. If the stock price falls, her wealth would decrease. As a result, her role has shifted from protecting investors’ rights to being an advocate for the company’s narrative, sometimes at the expense of compliance.
5. The Lesson from This Incident: Secretaries Are Not Corporate Spokespersons, but Compliants
The primary responsibility of a secretary is to ensure that investors are informed fairly and promptly about the company’s true situation. A compensation of over ten million yuan should come with a higher level of compliance awareness, rather than an inclination to exploit loopholes.
This regulatory penalty also highlights the importance of proper corporate governance:
- Incentives alone are not enough; there must also be adequate constraints. If the cost of violations is too low, high salaries are meaningless.
- Small and medium-sized investors should be cautious if a company frequently hides important information in minor documents, as it may indicate underlying issues.
In summary, a high salary does not exempt one from responsibility for compliance. The secretary’s primary duty is to ensure that investors have access to accurate and timely information.