The Shanghai Huzi Law Firm, led by attorney Liu Peng, has formally submitted filing materials for 39 investors to the competent people's court in cases against Longda Meishi (002726) and Kelida (603828) concerning securities misrepresentation liability disputes, with the court accepting the filings. Both companies have crossed regulatory red lines due to suspected violations of information disclosure laws, and the civil compensation proceedings for affected investors have now entered the judicial review phase.
Meanwhile, investors who have entrusted other cases to the firm need not worry, as all cases will be filed in sequence. For cases already submitted, the team has repeatedly urged the court to expedite processing. Some cases await model judgments, while others involve jurisdictional disputes; the team has pushed forward on every case where progress is possible. Cases not yet filed are queued for submission in due course.
First: Longda Meishi - Years of Accounting Error Corrections
The investor claims against Longda Meishi stem from the company's announcement on April 29, 2026, regarding prior-period accounting error corrections and retrospective adjustments. The announcement revealed that the company retrospectively adjusted its consolidated financial statements for fiscal 2024 and the first through third quarters of 2025, with net profits attributable to shareholders in the Q1 and half-year 2025 reports revised from profits to losses. Earlier, the Shandong Securities Regulatory Bureau had already identified multiple violations by Longda Meishi: from 2021 to 2024, the company failed to cease interest capitalization after convertible bond-related investment projects were transferred to fixed assets, and improperly capitalized interest on raised funds temporarily used to supplement working capital, rendering periodic report disclosures inaccurate. This series of accounting treatment issues directly undermined investor confidence in the authenticity of the financial statements.
More critically, due to frequent financial misstatements, the accounting firm issued an adverse opinion on the company's internal controls for fiscal 2025, and the company's stock has been placed under other risk warnings (ST designation).
Second: Kelida - A Repeat Offender in Disclosure Violations
On March 16 of this year, Kelida announced that the company and its chairman had each received a filing notice from the China Securities Regulatory Commission. Due to suspected violations of information disclosure laws, the CSRC decided to formally investigate the company and Gu Yiming. While the specific reasons for this investigation have not yet been disclosed, the company's prior track record had already planted the seeds of trouble. Due to the chairman's investigation and fund occupation issues, the company's financial reports received a qualified opinion. The main issues were twofold: first, controlling shareholders and actual controllers occupied company funds, with 160 million yuan in principal and interest repaid by the audit date, but auditors could not obtain sufficient evidence to verify the accuracy of the outstanding balance, repayment amounts, or interest accruals; second, the company and its chairman were under CSRC investigation for suspected disclosure violations, with no conclusion as of the audit report date, making it impossible to determine the impact on the financial statements.
Additionally, in April 2024, the company sharply revised its 2023 net profit forecast from a profit of 18 million to 27 million yuan down to a loss of approximately 128 million yuan, triggering significant stock price volatility. Because the company received adverse opinions on internal controls for two consecutive years (2023 and 2024), its stock has also been placed under other risk warnings (ST designation).
Third: Claim Conditions for Affected Investors
Under the Securities Law and the Supreme People's Court judicial interpretations on civil compensation for misrepresentation, listed companies that harm investor rights through information disclosure violations must bear civil liability, with compensation covering investment spread losses, commissions, and stamp duties. For Longda Meishi: investors who purchased shares between April 30, 2022, and January 30, 2026, and sold after January 31, 2026, or still hold at a loss, are eligible. For Kelida: (1) investors who purchased shares between December 12, 2023, and April 28, 2024, and sold after April 29, 2024, or still hold at a loss; (2) investors who purchased shares on or before March 16, 2026, and sold after March 17, 2026, or still hold at a loss.
Qualified investors should prepare materials including securities account information inquiry forms, stock transaction statements, and contact information to participate in the litigation claims. The specific scope of compensation in this case will be determined by the final effective court judgment.