ST Lingnan's Share Price Dips Below 2 Yuan Amid Ongoing Investigation and Investor Claims

Deep News16:45

The law firm team of Attorney Liu Peng from Shanghai Huzi Law Firm is still gathering affected investors for potential claims. The case traces back to September 2025, when the company and its former controlling shareholder received a "Notice of Case Filing" from the China Securities Regulatory Commission (CSRC). The CSRC formally decided to investigate the company and its former controlling shareholder due to suspected violations of information disclosure regulations.

It is noteworthy that the company's situation appears grim, with its current share price having fallen below 2 yuan. Furthermore, the company is entangled in numerous lawsuits and burdened with significant debt.

Additionally, as early as January 2024, the company's former actual controller transferred 200 million yuan out of the company without following the internal capital approval process or obtaining approval from the board of directors and shareholders' meeting as required by the company's "Internal Decision-Making System for Connected Transactions." As of June 30, 2025, the remaining balance of the funds misappropriated from the company by Yin Hongwei, which had not been repaid, stood at 142.35 million yuan.

The company subsequently made prior-period accounting error corrections, retrospectively adjusting relevant financial statements from 2021 to the first half of 2024. This action directly triggered investor litigation to protect their rights.

Attorney Liu Peng indicated that investors who purchased the company's shares during specific periods and suffered losses may have the right to seek legal recourse to protect their interests.

(1) Those who purchased shares between January 3, 2024, and April 29, 2025, and sold them after April 30, 2025, or continued to hold them and incurred losses.

(2) Those who purchased shares on or before September 5, 2025, and sold them after September 6, 2025, or continued to hold them and incurred losses.

Before participating in a claim, investors should prepare relevant transaction documentation, such as trading records and account statements, for the legal team to review eligibility. The legal team will provide legal assistance to affected investors based on relevant laws and regulations, striving to fully protect their legitimate rights and interests.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment