Leo Group Co.,Ltd. disclosed its first-quarter report for 2026 on April 29. The company recorded total operating revenue of 5.101 billion yuan, up 7.18% year-on-year. Net profit attributable to shareholders was 31.2623 million yuan, a decline of 71.06% compared to the same period last year. However, after adjusting for non-recurring items, the company reported a net loss of 36.3061 million yuan, contrasting with a profit of 40.7624 million yuan in the prior-year period.
Just days before the Q1 results were announced, the company issued a notice sharply revising down its full-year 2025 net profit forecast. The earlier projection of up to 250 million yuan was drastically cut to less than 45 million yuan, representing a downward adjustment of over 80%. This abrupt revision placed continued pressure on the company’s stock price over several trading sessions, causing significant losses for many investors.
Recently, the legal team led by attorney Liu Peng of Shanghai Huzi Law Firm has received claims registration from thousands of investors. Those eligible for compensation include investors who purchased shares between January 31, 2026, and April 23, 2026, and sold or continued to hold shares after April 24, 2026, incurring losses.
Looking back at the incident, on the evening of April 23, 2026, Leo Group released a “Revised Annual Earnings Forecast for 2025.” According to the announcement, the company had initially projected a net profit attributable to shareholders of 190 million to 250 million yuan for the full year in a January 31, 2026, forecast. However, the revised announcement indicated that the figure was adjusted to only 30 million to 45 million yuan.
Any attempt to conceal risks by embellishing financial information is unlikely to escape regulatory scrutiny. Information disclosure serves as a critical bridge between listed companies and investors and forms a fundamental basis for investment decisions. Since the implementation of the new Securities Law, requirements for information disclosure have become more detailed and stringent, with significantly heightened accountability for violations.
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