On October 25, 2025, Baiyin Nonferrous Group Co., Ltd. (referred to as Baiyin Nonferrous, stock code: 601212) announced that it had received a "Penalty Decision" from the Gansu Bureau of the China Securities Regulatory Commission (CSRC).
The Gansu Bureau of the CSRC found that Baiyin Nonferrous had violated regulations as follows: From August 2017 to March 2018, the company purchased financial products worth RMB 3 billion, which failed to be recovered on schedule in 2019. The principal and related returns were only recovered by December 2024. Although Baiyin Nonferrous disclosed the opening and closing balances of these financial products under "other current assets" in its annual reports from 2019 to 2024, it failed to provide specific details about the RMB 3 billion financial products as required by the "Content and Format Guidelines for Annual Reports of Companies Issuing Public Securities No. 2 (2017 Revision)" (CSRC Announcement [2017] No. 17) and the "Content and Format Guidelines for Annual Reports of Companies Issuing Public Securities No. 2 (2021 Revision)" (CSRC Announcement [2021] No. 15). Consequently, the company’s annual reports from 2019 to 2024 contained significant omissions in information disclosure. As a result, the Gansu Bureau of the CSRC ordered Baiyin Nonferrous and its responsible personnel to rectify the violations, issued warnings, and imposed fines.
Previously, on September 11, 2025, Baiyin Nonferrous announced that it had received a "Notice of Case Filing" from the CSRC. On October 1, 2025, the company disclosed that it had received an "Advance Notice of Administrative Penalty" from the Gansu Bureau of the CSRC.
Under the Civil Code, the Securities Law, and the Supreme People’s Court’s judicial interpretations on civil compensation for misrepresentation, listed companies, controlling shareholders, actual controllers, directors, supervisors, senior executives, and intermediaries may be held liable for civil compensation if their fraudulent securities activities cause losses to investors. Compensation may cover investment differentials, commissions, stamp duties, and interest losses. Affected investors may file civil compensation lawsuits in courts with jurisdiction.
Due to Baiyin Nonferrous’ alleged violations in information disclosure and subsequent penalties by the CSRC, lawyer Song Yixin of Shanghai Hanlian Law Firm is initiating a collective action on behalf of investors who purchased Baiyin Nonferrous securities. Eligible investors may register claims with the lawyer.
Lawyer Song Yixin stated that the claim eligibility for the Baiyin Nonferrous case is as follows: Investors who purchased publicly issued securities (such as stocks or bonds) of Baiyin Nonferrous between April 30, 2020, and September 10, 2025, and sold or continued to hold them after September 11, 2025, may register for compensation.
**Key Notes on the Case (Legal Disclaimer):** 1. The above claim conditions are for reference only and do not constitute investment advice. Final eligibility will be adjusted based on the CSRC’s penalty decision and court rulings. 2. Although investors may file lawsuits directly, the absence of a penalty decision may increase litigation risks. A formal CSRC penalty decision remains a critical prerequisite. 3. Whether the company is delisted does not affect the litigation process but may impact its timeline. Bankruptcy proceedings (e.g., restructuring or liquidation) could cause delays. Investors may opt in or out of class-action lawsuits. 4. Required documents for claim registration include: (1) A copy of the investor’s ID card, (2) A notarized securities account confirmation form, and (3) Original transaction records (stamped by the securities firm) from the first purchase date.
(Contributed by Lawyer Song Yixin of Shanghai Hanlian Law Firm. Lawyer Song, admitted to practice since 1992, specializes in capital markets, securities, financial legal services, and investor rights protection. He has handled over 10,000 securities litigation cases and authored several legal publications.)
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