Affected shareholders can register for company rights protection at the investor rights protection platform.
**I. Failure to Disclose Information in Timely Manner**
Due to a supplementary agreement concealed for four years, this regional dairy giant and its executives were hit with heavy penalties, and affected investors can seek compensation according to law.
The Shanghai Huzhi Law Firm's lawyer Liu Peng team has received registration requests from multiple investors and has prepared relevant litigation materials for court filing. Based on historical cases, the success rate for such securities false statement dispute cases is relatively high, with a strong possibility for investor compensation claims to succeed.
On June 13, Royal Group Co.,Ltd. announced that on June 12, 2025, the company and related parties received the "Administrative Penalty Decision" issued by the Guangxi Bureau of the China Securities Regulatory Commission. The company's violations involved failure to timely disclose a supplementary agreement. As a result, the company was ordered to make corrections, issued a warning, and fined 4 million yuan. Four executives, including the then-chairman and secretary of the board, were collectively fined 6.5 million yuan, totaling 10.5 million yuan in penalties.
**II. Investor Compensation Requirements**
Investigation revealed that the company's wholly-owned subsidiary signed a "Supplementary Agreement" with Tai'an Dongyue Fortune Equity Investment Fund Co., Ltd. on November 11, 2019, regarding deficit compensation and forward repurchase arrangements. However, this contract was not disclosed in the annual reports from 2019 to 2022, constituting a significant omission. It wasn't until November 21, 2023, that the company disclosed the main contents of the "Supplementary Agreement."
Under the registration system, the accuracy of information disclosure is crucial for investor decision-making and market fairness. When major events occur that may significantly impact the trading prices of listed company securities and their derivatives, and investors are not yet aware, listed companies should immediately disclose such information. Based on the company's violations, investors who purchased shares between April 15, 2020, and November 21, 2023, and sold after November 22, 2023, or still hold shares with losses, are eligible to participate in rights protection claims.
This article is provided by lawyer Liu Peng from Shanghai Huzhi Law Firm and does not represent the views of financial media. Lawyer Liu Peng has specialized in securities rights protection for 19 years. Since beginning practice in 2006, he has successfully represented small and medium investors in rights protection cases for over 300 listed companies, with more than 14,000 ongoing cases and a success rate of 99.2%. As a senior securities rights protection lawyer in the industry, Liu Peng accurately grasps case essentials, has rich litigation experience, and employs efficient compensation strategies to secure maximum benefits for investors, leading the industry in rights protection capabilities. In securities rights protection, choosing the right lawyer is key! Professionalism determines success, and experience ensures results. Choose lawyer Liu Peng for more secure and efficient compensation claims!
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