On August 29, 2026, Wenfeng Big World Chain Development Co., Ltd. (stock abbreviation: ST Wenfeng, stock code: 601010) released its 2026 interim report as scheduled. However, the financial results remain overshadowed by the ongoing investigation initiated by the China Securities Regulatory Commission (CSRC) against the company and its controlling shareholder, casting a cloud over its prospects.
According to the interim report, ST Wenfeng experienced significant operational pressure during the reporting period. The company recorded net profit attributable to shareholders of the parent company of RMB 11.03 million, marking a steep year-on-year decline of 82.82%. Basic earnings per share stood at just RMB 0.01. In its earlier earnings forecast, the company attributed the sharp drop in performance to weak consumer demand in the retail market, intensifying industry competition, and diversion of sales to online retail channels, all of which led to a decrease in overall revenue.
Adding to investor concerns, the interim report explicitly noted that, since the company and its controlling shareholder, Jiangsu Wenfeng Group, received a case filing notice from the CSRC in July 2026 for suspected violations of information disclosure regulations, the investigation has yet to reach a formal conclusion. As a result, the company stated that it cannot reasonably assess the potential impact of this matter on the financial information within the 2026 interim report.
As the investigation progresses, efforts to seek compensation for affected investors have already commenced. Liu Peng, a lawyer at Shanghai Huzi Law Firm, stated that according to the Securities Law and relevant judicial interpretations, investors who suffered losses due to a listed company's misrepresentation are entitled to claim damages. (Column by lawyer Liu Peng)
Investors who preliminarily meet any of the following conditions may join the claims process: (1) Those who bought shares on or before July 17, 2026, and sold them after July 20, 2026, or still hold them and incurred losses; (2) Those who bought shares between April 30, 2024, and April 28, 2026, and sold them after April 29, 2026, or still hold them and incurred losses. (Entry point for ST Wenfeng rights protection)
The root cause of this investigation may lie in internal control deficiencies and delayed information disclosure, with the final truth pending the regulatory authority's conclusions. This probe not only represents a reckoning for past disclosure violations but will also test whether the company can achieve genuine operational stability under heightened regulatory scrutiny.
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