Affected shareholders can register for rights protection on investor rights protection platforms.
Shanghai Jiucheng Law Firm's lawyer Xu Feng reminds that the investor compensation case against Hengbao Co.,Ltd. (002104) for false statements has entered its final countdown. Eligible investors must pay attention as there is only about half a month left for the statute of limitations, which will expire after the deadline.
Lawyer Xu Feng's representation of the Hengbao Co.,Ltd. investor compensation case has been submitted to the Nanjing Intermediate People's Court for filing multiple times, and is currently awaiting the court's next arrangement. The legal team continues to advance the filing work for subsequent cases and continues to accept compensation commissions from other investors.
On December 14, 2023, Hengbao Co.,Ltd. announced that it received the "Administrative Penalty Decision" from the China Securities Regulatory Commission. After investigation, it was found that Hengbao Co.,Ltd.'s annual reports from 2017 to 2020 contained false records.
The core of the related private network communication business involves the circulation of contracts, documents, and funds. In essence, it is a capital financing business disguised as trade business, providing financing to obtain fixed returns. This business lacks the commercial substance of commodity sales and purchase operations and does not comply with the requirements of "Enterprise Accounting Standards No. 14 - Revenue." Therefore, operating revenue and operating costs should not be recognized for this business.
Without fully evaluating and prudently understanding the essence of the private network communication business, Hengbao Co.,Ltd. recognized operating revenue and operating costs based on the amounts incurred in sales and procurement contracts, constituting inflated operating revenue and resulting in false records in the annual reports disclosed from 2017 to 2020. In 2017, operating revenue was inflated by 160.67 million yuan, accounting for 11.74% of the disclosed operating revenue that year. In 2018, operating revenue was inflated by 742.82 million yuan, accounting for 43.95% of the disclosed operating revenue that year. In 2019, operating revenue was inflated by 399.40 million yuan, accounting for 26.01% of the disclosed operating revenue that year. In 2020, operating revenue was inflated by 59.59 million yuan, accounting for 5.66% of the disclosed operating revenue that year.
Shanghai Jiucheng Law Firm's director lawyer Xu Feng believes that, considering the above violations and according to securities law provisions, investors who purchased Hengbao Co.,Ltd. stocks between April 27, 2018, and September 3, 2022, and sold or continued to hold stocks after September 3, 2022, can still file compensation claims within the final half-month statute of limitations.
(This article is provided by Shanghai Jiucheng Law Firm's director lawyer Xu Feng. Lawyer Xu Feng has been practicing law since 2008, with practice services covering compensation representation in securities fraud areas such as false statements, insider trading, and market manipulation. Over the past decade, he has represented nearly 200 stocks for investors who won lawsuits or obtained compensation through mediation. During the same period, he is also representing compensation cases for nearly 300 stocks within the statute of limitations, some of which have already achieved precedents of winning lawsuits and obtaining compensation through mediation. Practice certificate number: 13101200810965495)
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