On January 8, 2025, Shanghai Yilian disclosed that it had received an Administrative Penalty Decision from the Shanghai Bureau of the China Securities Regulatory Commission (CSRC), confirming that the company's previous violations related to information disclosure have been officially processed and penalized.
Notably, prior to this, the company had already been delisted on July 11, 2024, after its stock price remained below 1 yuan for 20 consecutive trading days, triggering the delisting criteria. Although the company has been removed from the market, delisting does not mean that investors' rights to claim compensation under the law have also been extinguished.
Based on the disclosed violations and relevant regulations, investors who meet specific trading conditions and have suffered losses as a result may still have the opportunity to file claims in accordance with the law to protect their legitimate rights and interests.
Lawyer Liu Peng stated that investors who purchased shares of Shanghai Yilian between April 29, 2021, and February 27, 2024, and sold them after February 28, 2024, or still hold the shares with losses, can initiate claims.
Following an investigation, the CSRC determined that Shanghai Yilian committed multiple violations in information disclosure: the company's annual reports for 2020 and 2021 failed to truthfully disclose the actual controller situation, and the relevant annual reports contained false records. Additionally, the corresponding annual reports did not disclose major related-party transactions as required, constituting material omissions.
The company also inflated its revenue and total profit through fictitious trade transactions, leading to false financial data in its annual reports from 2021 to 2023. Based on these illegal and non-compliant facts, the regulatory authorities imposed administrative penalties on the company in accordance with the law.
For investors interested in pursuing legal redress, it is recommended to prepare relevant materials in advance that can prove their trading history, including stock transaction records and capital statements, to facilitate preliminary review by legal teams. If the review confirms eligibility for a claim, investors can proceed with the legal process according to relevant laws and regulations to seek to recover their investment losses.
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