Affected investors can register their claims on the Sina Investor Rights Protection Platform: http://wq.finance.sina.com.cn/.
On the evening of December 19, 2025, Guizhou Bailing (Rights Protection), Funeng Oriental (Rights Protection), and Ba Yi Steel (Rights Protection) each announced that they and related parties had received the "Advance Notice of Administrative Penalties" from regulatory authorities. The three listed companies were previously investigated by the China Securities Regulatory Commission (CSRC) on November 8, 2024, December 6, 2024, and November 7, 2025, respectively.
According to the CSRC's notice, Guizhou Bailing's violations include failing to comply with the "Accounting Standards for Business Enterprises—Basic Standards" by not applying the accrual basis and mismatching revenue and expenses. The company underreported sales expenses and overstated profits by significant amounts from 2019 to 2023, leading to false disclosures in its annual reports for those years.
The Guangdong Securities Regulatory Bureau found that Funeng Oriental's subsidiary, Shenzhen Dayu Jingdiao Technology Co., Ltd., engaged in fictitious transactions with Chongqing Zhongguangdian Display Technology Co., Ltd., inflating profits in 2020 and underreporting them in 2021. These actions resulted in false records in the company’s annual reports for those years.
The Xinjiang Securities Regulatory Bureau determined that Ba Yi Steel conducted undisclosed non-operating fund transactions with its controlling shareholder, Ba Yi Iron & Steel Group, and related parties from 2022 to 2024. These transactions, involving billions of yuan, were omitted from the company’s annual reports, constituting material omissions.
Zhang Yun, a partner at Jiangsu Zhenze Law Firm, stated that investors who suffered losses may be eligible for compensation. Provisional eligibility periods are as follows: - Guizhou Bailing: Investors who bought shares between April 30, 2020, and November 8, 2024, and sold or held them after November 9, 2024. - Funeng Oriental: Investors who bought shares between April 14, 2021, and December 6, 2024, and sold or held them after December 7, 2024. - Ba Yi Steel: Investors who bought shares between April 18, 2023, and November 7, 2025, and sold or held them after November 8, 2025.
(Contributed by Zhang Yun, Partner at Jiangsu Zhenze Law Firm. Zhang Yun holds a Master of Laws and specializes in securities and financial litigation, with extensive experience in investor compensation cases.)
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