Leo Group Co.,Ltd. (002131), a company known for its dual primary businesses, has received the maximum disciplinary penalty of a public censure from the Shenzhen Stock Exchange due to suspected violations of information disclosure regulations. Following the implementation of this regulatory penalty, the compensation claim channel for affected investors in this case has now been fully activated.
After regulatory investigation, it was found that Leo Group Co.,Ltd.'s information disclosure contained serious misleading elements. On January 30, 2026, the company released a performance forecast predicting a net profit attributable to shareholders of RMB 190 million to RMB 250 million for 2025, sending a positive signal to the market. However, three months later on April 23, the company issued a revision announcement, significantly lowering the expectation to RMB 30 million to RMB 45 million. The final annual report showed actual net profit attributable to shareholders of only RMB 33.744 million, a decline of more than 80%.
The Shenzhen Stock Exchange pointed out that the company failed to promptly assess and warn of the large asset impairment risks of its investee companies despite being aware of them, and its earlier optimistic statements constituted serious misleading representations. Both the company and its Chairman Wang Xiangrong and CFO Yang Hao were publicly censured.
Amid this dramatic performance shift, the actual controller's share reduction activities have triggered strong market skepticism. From January to April 2026, when the company's stock price hit an all-time high of RMB 10.37, the actual controller Wang Xiangrong and his concerted parties cumulatively cashed out approximately RMB 947 million. In stark contrast, a large number of small and medium investors followed suit during this period, with the company's shareholder count surging from approximately 540,000 at the end of 2025 to 978,400 by the end of the first quarter of 2026.
With the negative impact of the performance downgrade materializing in late April, the company's stock price continued to decline, with a cumulative drop exceeding 60%, leaving nearly one million investors who entered at high prices trapped in deep losses. According to the Securities Law and relevant judicial interpretations, listed companies should bear compensation liabilities for investor losses caused by false statements. The public censure from the Shenzhen Stock Exchange has provided important evidence supporting the claims.
Currently, the lawyer team led by Liu Peng at Shanghai Huzi Law Firm has provisionally set the claim criteria as follows: investors who purchased Leo Group Co.,Ltd. shares between January 31, 2026, and April 23, 2026, and either sold or continued to hold them after April 24, 2026, resulting in losses, are eligible to file claims.
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