Investor Compensation Cases for Redphase Inc. (300427) and Huawen Media Group (000793) Progress Further

Affected investors can register claims against the companies via the investor rights protection platform.

Lawyer Xu Feng from Shanghai Jiucheng Law Firm noted that the investor compensation case against Redphase Inc. (300427) for false statements is still progressing.

The legal team has filed multiple claims on behalf of investors in the Redphase case and is awaiting court arrangements. Additional claims are still being accepted.

On April 3, 2024, Redphase Inc. disclosed receiving the "Administrative Penalty Decision" from the Xiamen Regulatory Bureau of the China Securities Regulatory Commission (CSRC). The investigation found the following violations:

1. **Misrepresentation in Disclosures** Redphase Inc. falsified annual reports from 2017 to 2022 by fabricating sales, procurement, and fixed assets. Key figures include: - 2017: Falsified revenue of RMB 104.8944 million (+14.10% of disclosed amount) and profits of RMB 59.7244 million (+38.03%). - 2018: Falsified revenue of RMB 255.5932 million (+19.49%) and profits of RMB 144.2206 million (+47.72%). - 2019: Falsified revenue of RMB 227.0667 million (+16.94%) and profits of RMB 141.1825 million (+48.19%). - 2020: Falsified revenue of RMB 304.9718 million (+20.12%) and profits of RMB 75.3842 million (+29.79%). - 2021: Falsified revenue of RMB 108.798 million (+7.80%) but understated profits by RMB 3.2544 million (−0.51%). - 2022: Overstated costs by RMB 24.8767 million (−33.27% impact on profits).

2. **Fraudulent Issuance** - Fraud in the 2019 private share placement. - Fraud in the 2020 public convertible bond issuance. - False records in the 2020 asset acquisition and financing documents.

Investors who bought Redphase shares between March 30, 2018, and April 29, 2023, and sold or held them after April 29, 2023, may file claims. The six-month statute of limitations is nearing expiration.

Separately, the compensation case against Huawen Media Group (000793) has also been filed, with the court’s next steps pending.

On April 22, 2025, Huawen Media Group received the CSRC’s penalty decision for inflating revenue and costs in its 2021 annual report, 2022 semi-annual report, and 2022 annual report by improperly recognizing internet ad revenue. Key figures: - 2021: Falsified revenue and costs of RMB 183.1889 million (+18.15% of disclosed revenue). - 2022 (H1): Falsified revenue and costs of RMB 59.7361 million (+15.86%). - 2022: Falsified revenue and costs of RMB 179.3406 million (+23.62%).

Investors who bought Huawen shares between April 27, 2022, and April 20, 2024, and sold or held them after April 20, 2024, may still file claims.