Affected investors can register their claims against the company on the Sina Investor Rights Protection Platform: http://wq.finance.sina.com.cn/
Xu Feng, a securities claim lawyer from Shanghai Jiucheng Law Firm, indicated that the investor compensation case against Huawen Media Group (000793) for misrepresentation is progressing. The law firm has submitted multiple case filings to the court on behalf of Huawen Media Group investors and is currently awaiting the court's next steps. Concurrently, the firm is processing filings for subsequent cases and continues to accept claim mandates from other investors.
On April 22, 2025, Huawen Media Group announced it had received a "Decision on Administrative Penalty" from the Hainan Regulatory Bureau of the China Securities Regulatory Commission. The investigation found that Huawen Media Group had violated regulations by using the gross method to recognize revenue from internet advertising recharge agency businesses conducted by its subsidiaries, Beijing Guoguang Guangrong Advertising Co., Ltd. and Tianjin Zhangshi Guangtong Information Technology Co., Ltd. This accounting practice did not comply with relevant provisions of Accounting Standards for Business Enterprises No. 14—Revenue, resulting in inflated operating revenue and costs. Consequently, the company's 2021 Annual Report, 2022 Semi-Annual Report, and 2022 Annual Report contained false records.
Lawyer Xu Feng believes that investors who purchased Huawen Media Group shares between April 27, 2022, and April 20, 2024, and sold or continued to hold those shares after April 20, 2024, may still initiate claims.
In addition to the ongoing claims against Huawen Media Group, public information shows that investors have already won lawsuits against Beijing Kingee Culture Development Co.,Ltd. (002721), and further claim litigation can still be initiated.
On the evening of June 7, 2024, Beijing Kingee Culture Development announced it had received a "Decision on Administrative Penalty" from the Beijing Regulatory Bureau of the China Securities Regulatory Commission. The investigation found that the company had insufficient inventory impairment provisions in 2020 and 2021. This led to an overstatement of inventory by 6.10 billion yuan in 2020, representing 5.92% of total assets at the period-end, and an overstatement of total profit by 6.10 billion yuan, accounting for 21.21% of the total profit for the period. In 2021, inventory was overstated by 637 million yuan, representing 7.03% of total assets at the period-end, and total profit was overstated by 28 million yuan, accounting for 1.89% of the total profit for the period. These matters resulted in misstatements in the company's 2020 and 2021 Annual Reports.
Xu Feng, the lead lawyer at Shanghai Jiucheng Law Firm, which specializes in securities claim legal affairs, stated that investors who purchased Beijing Kingee Culture Development shares between April 30, 2021, and May 1, 2023, and sold or continued to hold those shares after May 1, 2023, can still file claims. However, he noted that the deadline is approaching, with only one month remaining before the claims expire.
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