Regulatory action has concluded against Wintao Communications Co.,Ltd. (formerly *ST Yuandao) after the China Securities Regulatory Commission issued a formal administrative penalty decision. The regulator determined the company committed two violations: fraudulent issuance and false disclosures in its annual report. Liu Jia, a lawyer from Shanghai Jiayu Li Law Firm, stated that the team has already submitted lawsuit materials to the Fuzhou Intermediate People's Court on behalf of over one hundred investors, marking a significant step in the ongoing compensation claims process.
The case has triggered the criteria for mandatory delisting due to major violations. Trading in the company's shares has been suspended since August 31, with the Shenzhen Stock Exchange set to proceed with the termination of listing procedures. Investigations revealed that the entity fabricated substantial false content in its IPO prospectus, inflating revenue from 2019 to 2021 through fictitious work volume confirmation documents. Additionally, the 2022 annual report following its listing also contained inflated revenue figures. The continuous nature of fraudulent activities during the issuance phase and subsequent financial misstatements after listing stand out as key characteristics of this violation.
Under the Securities Law and relevant judicial interpretations on securities misrepresentation, investors who suffered investment losses due to these false statements are entitled to seek civil compensation from the responsible parties. The claims team led by lawyer Liu Jia has set preliminary eligibility conditions: investors who purchased shares between July 8, 2022, and July 11, 2025 (inclusive), and either sold after July 12, 2025, or continue to hold at a loss. Eligible investors may register for rights protection through legal channels to recover their investment losses.
Lawyer Liu Jia reminds potential claimants to prepare supporting documents early, including securities account details and complete trading records. The team operates on a contingency fee basis, charging no upfront agency fees before litigation commences. The final outcome of the case will depend on court proceedings and judgments.