Investigation Outcome for Xiangyou Technology Pending, Eligible Shareholders May Pursue Compensation

The investigation results into Xiangyou Technology have not yet been released, but certain investors who suffered losses may still be eligible to claim compensation.

On March 16, 2026, the company was placed under formal investigation by the China Securities Regulatory Commission (CSRC) on suspicion of violating information disclosure regulations. Concurrently, as its net assets are projected to be deeply negative by the end of 2025, the company's stock was marked with a delisting risk warning (*ST) following the release of its annual report.

A claim initiative is currently ongoing for affected investors. Those who purchased shares on or before March 16, 2026, and subsequently sold or continued to hold them after March 17, 2026, incurring losses, are preliminarily eligible to join the claim.

A review of company announcements reveals a significant performance warning issued in late January. The company forecasted a net loss attributable to shareholders ranging from 370 million to 550 million yuan for the fiscal year 2025, a stark contrast to the profit reported for the same period the previous year.

The company attributed the loss to overdue payments from certain clients, necessitating substantial impairment provisions estimated between 280 million and 460 million yuan.

This explanation has not been fully accepted by the market. Previously, the Shanghai Stock Exchange had issued an inquiry letter regarding the abnormally high gross profit margin of the company's "Other Industries" business segment.

The exchange questioned the authenticity of transactions with clients such as Tianjin Membrane Art Workshop Environmental Technology Co., Ltd. In its response at the time, the company stated it had "communicated with the clients and subsequent payments would be made normally."

These irregularities point to significant deficiencies in the company's internal controls and information disclosure practices. The specific regulatory violations await the conclusion of the official investigation. However, the company is expected to face a sustained wave of investor compensation claims.