Allwin Telecommunication, which exited the A-share market after its market value remained below 500 million yuan for consecutive trading days, has seen fresh momentum in investor litigation. Recently, a batch of investors won their first-instance lawsuit against the company over securities misrepresentation liability. This outcome signals that despite the company having completed its delisting and entered a new trading phase, the civil liabilities tied to earlier disclosure violations do not automatically vanish with the stock's removal from the exchange. Affected investors can still pursue their rights through legal channels such as litigation.
The risk episode at Allwin Telecommunication is linked to a shift in its earnings guidance for 2025. On January 24, 2025, the company projected full-year 2024 revenue between 450 million and 520 million yuan. By April 22, however, it slashed that forecast to a range of 280 million to 299 million yuan, alongside a deepening of its loss position. After such a sharp downward revision within a short span, the company's shares came under threat of delisting.
In June 2025, the Liaoning Regulatory Bureau imposed supervisory measures on the company and relevant individuals, citing inaccuracies in earnings forecasts and financial reports, as well as non-operational fund occupation by shareholders. Regulatory probes revealed that starting in August 2023, portions of funds belonging to the company and its controlled subsidiaries were diverted for non-operational use by the controlling shareholder and related parties. By the end of 2024, the outstanding balance of such fund occupation stood at approximately 208 million yuan. These issues became a prominent source of concern over the company's operational and governance risks.
On March 20, 2026, Allwin Telecommunication concurrently received a case-filing notice from the China Securities Regulatory Commission and a delisting decision from the Shenzhen Stock Exchange. With the stock's total closing market value dipping below 500 million yuan for 20 consecutive trading days, the company triggered the mandatory delisting criteria tied to trading indicators and formally exited the exchange on March 27.
For investors, the compensation avenue remains compelling. Lawyer Liu Peng from Shanghai Huzi Law Firm noted that eligible affected investors should stay abreast of case progress and validly defend their interests. Currently, those who bought Allwin Telecommunication shares between January 24 and April 21, 2025 (inclusive), and either sold after April 22, 2025 or still held them with resulting losses, may explore further steps in the rights recovery process.
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