East Group Co. Investor Claims Filed Again in Court Following Prior Successful Cases

Affected shareholders can register their claims against the company on the Sina Investor Rights Protection platform: http://wq.finance.sina.com.cn/

On February 4, 2026, a new batch of investor claims against East Group Co.,Ltd. (300376), stemming from allegations of false disclosure, was filed with the Guangzhou Intermediate People's Court by attorney Xu Feng from Shanghai Jiucheng Law Firm. The attorney indicated that there have already been favorable court rulings for investors in the East Group Co. case.

Attorney Xu Feng has successfully reached settlements for a portion of the investor claims against East Group Co.,Ltd., with some clients having already received compensation. The legal team is concurrently advancing the filing of subsequent cases and continues to accept mandates from other investors seeking compensation.

On the evening of December 31, 2024, East Group Co. announced it had received the "Administrative Penalty Decision" from the China Securities Regulatory Commission (CSRC). The investigation found that the company had committed the following illegal acts: Firstly, East Group Co. inflated its operating revenue, operating costs, and total profit by engaging in fictitious trade businesses. Secondly, the company inflated its operating revenue and operating costs through procurement agency businesses and other agency operations that had financing characteristics. Thirdly, it inflated operating revenue and costs by engaging in data center integration businesses that also possessed financing attributes.

In summary, East Group Co. inflated its operating revenue, operating costs, and total profit through the aforementioned fake trade businesses, financing-related procurement agency operations, agency businesses, and data center integration services, all of which lacked commercial substance. This resulted in false records in the annual reports disclosed by the company from 2017 to 2021.

Attorney Xu Feng, the lead partner at Shanghai Jiucheng Law Firm, which specializes in stock compensation litigation, believes that based on the prior successful investor rulings, investors who purchased East Group Co. stock between March 15, 2018, and May 12, 2023, and subsequently sold or held the stock after May 12, 2023, are still eligible to initiate claims for compensation.