Affected investors can register claims against the company on Sina's investor rights protection platform.
1. **Failure to Disclose Information Promptly** Royal Group Co.,Ltd. recently disclosed its third-quarter financial results, reporting a net loss of nearly 50 million yuan for the first three quarters, with a year-on-year decline in operating cash inflows. The company had previously faced regulatory penalties, triggering investor claims.
The legal team of Shanghai Huzi Law Firm, led by attorney Liu Peng, has submitted multiple batches of cases to the court for review. Historical precedents suggest a high probability of success in such securities misrepresentation disputes, with favorable outcomes for investors. Eligible claimants are encouraged to participate.
The case stems from a June 12, 2025, announcement by Royal Group Co.,Ltd. stating that the company and related parties received a "Penalty Decision" from the Guangxi Regulatory Bureau of the China Securities Regulatory Commission (CSRC). The violations involved the untimely disclosure of a supplementary agreement. Consequently, the company was ordered to rectify the issue, issued a warning, and fined 4 million yuan. Four executives, including the then-chairman and board secretary, were collectively fined 6.5 million yuan, bringing the total penalties to 10.5 million yuan.
2. **Investor Claim Requirements** Investigations revealed that a wholly-owned subsidiary of Royal Group Co.,Ltd. signed a supplementary agreement with Tai'an Dongyue Wealth Equity Investment Fund Co., Ltd. on November 11, 2019, outlining terms for deficiency guarantees and forward repurchases. However, this agreement was omitted from the company’s annual reports from 2019 to 2022, constituting a material omission. The details of the supplementary agreement were only disclosed on November 21, 2023.
Investors who purchased shares between April 15, 2020, and November 21, 2023, and either sold them after November 22, 2023, or continue to hold them at a loss may qualify for compensation.
Upon registration, the legal team will review each investor’s case to determine eligibility and provide full support for subsequent claims.
(Note: This article is provided by attorney Liu Peng of Shanghai Huzi Law Firm and does not represent the views of Sina Finance. With 19 years of experience in securities litigation, Liu Peng has successfully represented investors in over 300 listed companies, including cases involving Zhongqingbao, Guohua Cyber Security, and Jinjia Holdings, with a 99.2% success rate.)
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