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On August 8th, China Securities Journal reporter learned that in the investor's lawsuit against Hemei Group (002356.SZ) for false securities statements, 59 investors won and Hemei Group was found guilty and ordered to pay over 4.49 million yuan in compensation.

Shanghai Xinyi Law Firm lawyer Zhang Wei told China Securities Journal that the reasons for the investor's claim include false statements, insider trading, securities market manipulation, and other behaviors by listed companies. Currently, the lawsuits mainly involve false securities statement disputes, which are reflected in false records, misleading statements, and significant omissions. This type of case has matured and there have been many cases of investors being compensated for related cases.

According to Hemei Group's previous announcements, 117 investors had filed a civil lawsuit against the company for false securities statements, stating that on April 30, 2019, Hemei Group confirmed that it had engaged in illegal guarantees, the illegal use of funds, and other information disclosure violations. In 2019, the company was investigated by the China Securities Regulatory Commission for suspected violations of information disclosure laws and other regulations, and was warned for illegal use of funds. In 2021, the company was warned by the China Securities Regulatory Commission for not timely disclosing the progress of judicial auctions related to the equity of a subsidiary, and for not timely disclosing significant debt overdue matters.

The announcement pointed out that according to the provisions of the Securities Law and relevant judicial interpretations, there is a causal relationship between Hemei Group's false securities statements and the losses suffered by the plaintiff (investor). Therefore, it must compensate the plaintiff for the losses. The Shenzhen Intermediate People's Court supported the partial litigation request of 59 investors in the first instance, ruling that Hemei Group should bear 70% of the compensation liability, involving an amount of 4.4942 million yuan.

Hemei Group announced today that the Guangdong High People's Court rejected the company's second appeal and upheld the first instance ruling, involving a total amount of 4.4942 million yuan. The company will also bear the total litigation acceptance fee for the first and second instance cases, totaling 0.172 million yuan. This judgment is a final decision. Hemei Group stated that it had accrued estimated liabilities in accordance with the first instance judgment in the 2023 annual report, and this judgment would not affect the company's current profits and losses.

As of August 8th, the total amount of investors' lawsuits against Hemei Group amounted to 30.3972 million yuan, involving 288 investors. Among them, 21 investors withdrew their lawsuits, and the Shenzhen Intermediate People's Court has made a first-instance judgment on 111 investors' lawsuits, amounting to a total of 9.1191 million yuan. The remaining 156 investors' lawsuits have yet to be judged, involving a total amount of 1.6069 million yuan.

China Securities Journal reporter noticed that since July, listed companies such as Shenzhen Coship Electronics (002052.SZ), Shanghai Kinlita Chemical (300225.SZ), and Gansu Jingang Solar (300093.SZ) have issued announcements regarding investor lawsuits and related developments. Companies that are currently being sued by investors for compensation also include Shaanxi Aerospace Power Hi-Tech (600343.SH), Jiangsu Lanfeng Bio-Chemical (002513.SZ), and others.