LongYuan Technology Group Co., Ltd. (LongYuan Group) was sued by investors for financial fraud, seeking a compensation of 93.5685 million yuan.
In the announcement “Regarding Litigation Matters and Progress” released by LongYuan Group on March 1st, the company stated that they recently received materials related to a securities false statement liability dispute case delivered by the court. Three investors, including Xiong Xianzhong, sued LongYuan Group, seeking a judgment for the defendant to compensate the total losses of the three investors amounting to 93.5685 million yuan, and to bear the litigation costs.
The announcement explained that the company was fined by the Shenzhen Securities Regulatory Commission on October 23, 2020, for false financial data disclosed in the annual reports of 2016 and 2017. Investors who suffered losses due to the aforementioned information brought the case to court.
It was stated in the announcement that the impact amount of the lawsuit on the company’s profits cannot be determined at the moment.
As of the closing on February 28th, LongYuan Group traded at 5.10 yuan per share with a total market value of 6.7 billion yuan.
This lawsuit is not the first time LongYuan Group has been taken to court by investors.
On January 1st of this year, an announcement by LongYuan Group disclosed that the company received materials for the registration of a securities false statement liability dispute case from 14 investors. A civil ruling document from the court ordered LongYuan Group to pay a total compensation of 0.549 million yuan within ten days of the effective date of the judgment.
In the announcement “Regarding the 2024 Annual Performance Forecast” released on January 18th by LongYuan Group, it was stated that the estimated net profit attributable to the shareholders of the listed company for the year 2024 ranged from -900 million yuan to -600 million yuan; the estimated net profit excluding non-recurring gains and losses attributable to the shareholders of the listed company for 2024 was expected to be -950 million yuan to -650 million yuan.
Public records show that LongYuan Technology Group Co., Ltd. was founded in 1986 by the Chinese Academy of Sciences and was listed on the Shanghai Stock Exchange in December 2002. The group is headquartered in Nanshan District, Shenzhen, and has 14 industrial parks in cities such as Shenzhen, Zhuhai, Dongguan, and Suzhou, with a staff of over 8100 employees.
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