Ningbo Xianfeng New Material Co.,Ltd. announced on May 16, 2026, that it and its relevant parties received an Administrative Penalty Prior Notice. The Ningbo Securities Regulatory Bureau determined that the company will face administrative penalties due to its alleged failure to properly disclose a share transfer matter.
Lawyers remind that investors who purchased shares of Ningbo Xianfeng New Material between November 9, 2018, and March 19, 2024, and continued to hold or sold at a loss after March 20, 2024, are entitled to claim compensation for related investment losses from the company. The specific eligibility criteria for claims are subject to court determination.
**Violation Facts** The regulatory investigation found the following violations: On November 6, 2018, the then-controlling shareholder and actual controller, Lu Xianfeng, signed a Share Transfer Agreement with the acquirer, He Qinming. The agreement stipulated that Lu would transfer 29.8% of his shares in Ningbo Xianfeng New Material to He or his designated assignee, with a transfer price not exceeding 1 billion RMB. The company failed to promptly disclose the signing of this agreement. It was not until March 19, 2024, in an announcement titled "Announcement Regarding the Controlling Shareholder Signing a Controlling Stake Transfer Agreement and Related Litigation," that the matter was first disclosed.
After the Share Transfer Agreement was signed, Lu Xianfeng, as the then-controlling shareholder and actual controller, concealed the signing of the agreement, leading to the company's failure to disclose the aforementioned information as required.
The company's actions violated provisions of the Securities Law (2005) and the Securities Law (2019), constituting illegal information disclosure as described in Article 197, Paragraph 1 of the Securities Law.
**Claim Information** According to relevant laws and regulations, listed companies involved in securities misrepresentation are liable to compensate investors for resulting investment losses.
Lawyers reiterate that investors who purchased shares of Ningbo Xianfeng New Material between November 9, 2018, and March 19, 2024, and continued to hold or sold at a loss after March 20, 2024, have the right to seek compensation from the company.
The aforementioned claim conditions represent the view of legal counsel and are not intended as investment advice or trading recommendations. Final eligibility is determined by the court.
Investors participating in a share compensation claim need to prepare the following materials: 1. A statement of stock transactions (if the statement does not show the complete ID number, a shareholder information form must be printed separately; the statement period should cover from the first purchase date until the shares were fully sold or the date the statement was printed). 2. A copy of their ID card.
**Attorney Fees** If a lawyer is engaged, such cases are typically handled on a contingency fee basis. No upfront fees are charged. Attorney fees are paid as a percentage of the compensation awarded upon a successful claim. No fees are payable if no compensation is obtained.
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