Derun Electronics Anticipates Losses Amid Financial Fraud Scandal

Deep News
昨天

Investors who suffered losses can register their claims through the Sina Investor Rights Protection platform. The platform is accessible via the Sina Securities WeChat account, by searching for Sina investor rights protection online, or through the Sina Finance app and website.

The company is facing litigation for securities misrepresentation, with a recent case filed by investors represented by attorney Liu Peng of Shanghai Huzi Law Firm. ST Derun released its 2025 performance forecast, projecting a net loss attributable to shareholders of 25 to 40 million yuan, compared to a loss of 1.225 billion yuan in the same period last year. Beyond continued operational losses, the firm is confronting investor compensation lawsuits.

The case originated from an announcement on December 31, 2025, in which Derun Electronics disclosed that it had received a prior notice of administrative penalties from the Shenzhen Regulatory Bureau. Investigations revealed that the company had falsified records in multiple periodic reports for the years 2020, 2021, and 2022.

Due to the false records in its financial reports over several consecutive years, the company has been placed under special risk警示. The eligibility criteria for compensation claims have been updated: investors who purchased shares between August 27, 2020, and December 30, 2023, and sold them after December 31, 2023, or still hold them at a loss, may now join the claim.

The financial fraud was orchestrated by the company's actual controller, who fabricated over 534 million yuan in repayments. The scheme dates back to 2020, when Derun faced cash flow difficulties after a major client encountered operational issues and failed to repay debts on time.

To address the problem, the actual controller and then chairman and president, Qiu Jianmin, resorted to unconventional methods. Qiu used personal funds and external loans to provide financial support to Derun's customers, former subsidiaries, and equipment suppliers. These related parties then returned the funds to Derun under the guise of "repaying historical debts."

In June 2022, Qiu instructed a Derun subsidiary to advance funds to an affiliated enterprise under the pretense of "prepaying for goods." In reality, the money was used to help the affiliate repay previous financial assistance provided by Derun. These actions resulted in false entries in three of Derun's periodic reports, involving fabricated repayments totaling 534 million yuan.

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