1. Some Cases Have Been Heard in Court

On March 27, 2025, Xinyuan Technology announced that the company received a "Notice of Case Filing" from the China Securities Regulatory Commission (CSRC). Due to suspected illegal information disclosure violations, the CSRC decided to file a case against the company. The specific reasons have not yet been disclosed and require a regulatory investigation report for clarification. The regulatory filing indicates that the company indeed has compliance violations. Behind information disclosure violations often lie serious illegal activities such as unlawful related-party transactions, irregular fund occupation, and financial fraud. According to relevant laws and regulations, investors who suffered losses due to these violations may file lawsuits to recover their investment losses.

The company was also previously applied for restructuring by creditors. Subsequently, on July 4, it announced receiving a court-delivered "Notice Regarding the Court's Decision to Initiate Pre-Restructuring Procedures for the Company and Appoint Interim Administrators During the Pre-Restructuring Period." The court decided to initiate pre-restructuring for the company and notified creditors to declare their claims to the interim administrator. With high delisting risks and ongoing litigation, restructuring may provide a lifeline for the company. Attorney Liu Peng from Shanghai Husi Law Firm stated that successful restructuring would also benefit investor rights protection matters.

2. Affected Investors Can Claim Compensation

According to the new judicial interpretation on securities false statements, the prerequisite procedures have been clearly abolished. Investors who suffer losses due to false statements by listed companies can file civil compensation lawsuits with competent courts to protect their legitimate rights and interests. Claimable losses include investment differential losses, stamp tax, and commission losses. Investors who purchased company shares before the case filing announcement can seek compensation through judicial channels, claiming they were harmed by false statements.

Since the case filing, numerous investor registration requests have been received, and some cases have already been submitted for filing. Based on relevant laws and regulations, the following time periods are tentatively eligible for participation:

(1) Purchased before March 27, 2025 (inclusive), and sold after March 28, 2025, or still holding with losses (2) Purchased during the period from March 27, 2020, to March 27, 2025 (inclusive), and sold after March 28, 2025, or still holding with losses

Attorney Liu Peng has specialized in securities rights protection for 19 years. Since beginning practice in 2006, he has successfully represented retail investors from over 300 listed companies including Zongheng Online, Guohua Netcom, and Jinji Shares, with over 14,000 cases handled and a 99.2% success rate. As a senior securities rights protection attorney in the industry, Attorney Liu Peng precisely grasps case essentials, has rich litigation experience, and employs efficient claim strategies to secure maximum benefits for investors, with industry-leading rights protection capabilities.