**I. Investigation Launched for Information Disclosure Violations**
On July 24, Ningbo Xianfeng New Material Co.,Ltd. announced that the company and its former controlling shareholder and actual controller Lu Xianfeng recently received notice of case filing from the China Securities Regulatory Commission (CSRC). Due to suspected information disclosure violations, the CSRC decided to open an investigation into both the company and former actual controller Lu Xianfeng. This company, which had just successfully removed its delisting risk warning at the end of May 2025, has once again fallen into regulatory scrutiny. As of the end of September 2025, the CSRC's investigation into Ningbo Xianfeng New Material continues, with final conclusions pending regulatory investigation results.
Legal experts indicate that information disclosure is the most fundamental trust mechanism in capital markets. The company's investigation by the CSRC has led to stock price declines, causing losses for numerous investors. According to relevant laws and regulations, affected investors have the right to file civil lawsuits for legal compensation. Preliminary eligibility includes investors who purchased shares before July 24, 2025 (inclusive) and sold after July 25, 2025, or continue to hold shares at a loss.
**II. Company Currently Has No Actual Controller**
Notably, Ningbo Xianfeng New Material is currently in a state of having no controlling entity. Lu Xianfeng was originally the founder, controlling shareholder, and actual controller of Ningbo Xianfeng New Material, but his shareholdings were judicially auctioned and transfer registrations completed, resulting in the company's transition from having Lu Xianfeng as controlling shareholder and actual controller to having no controlling shareholder or actual controller.
Reviewing the company's historical announcements reveals previous regulatory attention. Former actual controller Lu Xianfeng and related parties signed an "Equity Transfer Agreement" involving changes in company control as early as November 2018, but this information was not disclosed until March 2024, concealing the matter for over five years. Both Ningbo Xianfeng New Material and actual controller Lu Xianfeng received warning letters from securities regulators.
Specific violation details await regulatory investigation conclusions. Currently, eligible investors can actively register for compensation claims and participate in rights protection. Securities misrepresentation liability disputes have statute of limitations restrictions (generally three years), so qualified investors are advised to initiate rights protection procedures early.
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