Leo Group Co.,Ltd. (002131), a company previously publicly reprimanded by the Shenzhen Stock Exchange for a significant discrepancy between its earnings forecast and final audited figures, released its 2026 semi-annual report on August 27, 2026. The report reveals that while the company achieved revenue of 10.188 billion yuan for the first half of the year, marking a 5.74% year-on-year increase, profitability took a sharp hit. Net profit attributable to shareholders plummeted by 71.07% year-on-year to just 138 million yuan, highlighting a clear case of rising revenue without corresponding profit growth.
This latest financial disclosure arrives just over a month after the company was sanctioned for the material gap between its 2025 annual performance forecast and the final audited annual report figures. Consequently, the company is now confronting a wave of batch compensation lawsuits from aggrieved investors. The legal team led by lawyer Liu Peng from Shanghai Huzi Law Firm recently filed claims on behalf of 35 investors with the court.
Investors who meet the eligibility criteria can register for compensation claims. The qualifying window includes those who purchased shares between January 31, 2026, and April 23, 2026, and either sold them after April 24, 2026, or continue to hold them at a loss.
The root cause of this compensation dispute traces back to a dramatic profit warning reversal earlier this year. On January 31, 2026, the company released its 2025 annual performance forecast, projecting a net profit between 190 million and 250 million yuan, signaling a strong return to profitability. However, on April 24, the company abruptly issued a revised announcement, slashing its profit forecast to a range of just 30 million to 45 million yuan. The final audited annual report subsequently revealed a net profit of only 33.7444 million yuan—more than 80% below the initial forecast's upper limit.
The substantial earnings gap drew regulatory scrutiny. On July 3, 2026, the Shenzhen Stock Exchange issued a disciplinary decision, determining that Leo Group Co.,Ltd.'s performance forecast had a material discrepancy from the audited annual net profit. The exchange publicly reprimanded the company, along with its Chairman and General Manager Wang Xiangrong, and Chief Financial Officer Yang Hao.
For affected investors, actively pursuing legal channels may offer an effective avenue to recover some of their losses. However, it remains crucial to carefully verify the eligibility criteria—only those with buy and sell records within the specified period are qualified to participate in the claims.
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