Investors who suffered losses can register their claims against the company on the Sina Investor Rights Protection platform.
On March 28, 2026, Shenzhen Deren Electronics Co., Ltd. announced that it and related individuals had received a "Decision on Administrative Penalty" from the Shenzhen Securities Regulatory Bureau. The penalty was imposed because Deren Electronics' annual reports contained false records.
The Shenzhen regulatory bureau's investigation concluded that Deren Electronics committed the following violations: From 2020 to 2021, due to operational difficulties faced by Deren's major clients, who were unable to repay debts, the company experienced cash flow strain. Qiu Jianmin, the actual controller and then chairman and president of Deren Electronics, used personal funds and external borrowings to provide financial support to Deren's clients, former subsidiaries, and equipment suppliers. This support was used by these entities to repay historical debts owed to Deren Electronics. Qiu Jianmin did not report the actual source of these funds to Deren Electronics, leading the company to fabricate repayments of 394,584,426.91 yuan in 2020 and 112,960,100 yuan in 2021. This resulted in an understatement of credit impairment losses by 371,151,433.40 yuan and 66,393,093.51 yuan, respectively, and an understatement of capital reserve by 321,316,487.76 yuan and 434,276,587.76 yuan, respectively. In June 2022, Qiu Jianmin instructed a subsidiary of Deren Electronics to indirectly provide funds to an associate company of Deren, under the guise of advance payments for goods. These funds were used to repay matured financial assistance loans from Deren Electronics. This action led to the fabrication of 26,836,923.99 yuan in repayments for the first half of 2022 and an understatement of credit impairment losses by 5,060,996.46 yuan.
These actions resulted in false records in Deren Electronics' 2020 Annual Report, 2021 Annual Report, and 2022 Semi-Annual Report. Furthermore, on January 11, 2022, after completing a private placement, Deren Electronics disclosed a report that cited financial data from its 2020 Annual Report and the period from January to September 2021, which also contained false records.
The false records in Deren Electronics' 2020 Annual Report, 2021 Annual Report, 2022 Semi-Annual Report, and private placement documents violated provisions of the Securities Law and constitute illegal activities as defined therein.
According to relevant laws and regulations, listed companies that engage in false securities disclosures are liable to compensate investors for resulting investment losses.
Investors who purchased Deren Electronics stock between August 27, 2020, and December 29, 2023, and continued to hold or sold at a loss after December 30, 2023, are entitled to claim compensation for their losses.
Investors participating in the claim process are required to prepare the following materials: 1. A statement of stock transactions covering the period from the first purchase until the shares were fully sold or the date the statement is printed. 2. A copy of their ID card.
Regarding legal fees, if a lawyer is appointed, such cases are typically handled on a contingency basis. This means no fees are charged upfront; legal fees are paid as a percentage of the compensation awarded only if the case is successful. No fees are required if no compensation is obtained.
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