Hozon Tech Shareholder Compensation Case Enters Final Year of Limitation Period

Deep News
01/21

Investors who have suffered losses can register their claims against the company on the Sina Investor Rights Protection platform: http://wq.finance.sina.com.cn/

The limitation period for the investor compensation case against Hozon Tech, arising from securities misrepresentation, is now less than one year. Eligible shareholders wishing to participate in the claim must file a lawsuit before December 3, 2026, or they may lose the right to a favorable judgment.

Lawyer Chen Yuxia reminds that any investor who purchased Hozon Tech shares between January 1, 2022, and December 3, 2023, and continued to hold or sold them at a loss after December 4, 2023, is entitled to claim relevant losses from Hozon Tech. (The specific claim conditions are subject to the court's final determination.)

**Violation Facts**

After an investigation, the Beijing Securities Regulatory Bureau determined that Hozon Tech committed the following violations:

Hozon Tech's wholly-owned subsidiaries, Beijing Hozon Shike Electric Technology Co., Ltd. and Tianjin Hozon Electric Equipment Co., Ltd., provided financial assistance to related parties Tianjin Maolian Technology Co., Ltd., Zhejiang Yinglian Technology Co., Ltd., and Tianjin Shenglian International Trade Co., Ltd. through Beijing Huahuan Lida Technology Co., Ltd. and Tianjin Yongtaijunan Technology Co., Ltd. This constituted non-operating fund occupation by related parties. The total funds provided in 2022 amounted to 508.4806 million yuan, representing 21.78% and 17.01% of Hozon Tech's most recently audited net assets and its disclosed net assets for the period, respectively.

Hozon Tech failed to disclose these related-party transactions in a timely manner, violating Article 78, Paragraph 1 of the Securities Law, and constituting an illegal act as described in Article 197, Paragraph 1 of the Securities Law. Furthermore, Hozon Tech failed to disclose the aforementioned related-party transactions in its 2022 annual report as required, resulting in a material omission. This violates Article 78, Paragraph 2 of the Securities Law, constituting an illegal act as described in Article 197, Paragraph 2 of the Securities Law.

**Claim Details**

According to relevant laws and regulations, listed companies are liable for compensation for investment losses caused to investors due to securities misrepresentation.

Lawyer Chen Yuxia reiterates that any investor who purchased Hozon Tech shares between January 1, 2022, and December 3, 2023, and continued to hold or sold them at a loss after December 4, 2023, is entitled to claim relevant losses from Hozon Tech. (Hozon Tech Claim Portal)

The above claim conditions represent only the views of Lawyer Chen Yuxia and should not be construed as investment advice or trading recommendations. The final eligible claim conditions are subject to the court's determination. (Lawyer Chen Yuxia's Column)

Shareholders participating in the stock compensation claim need to prepare the following materials: 1. Stock transaction statements (If the statements do not show the full ID number, a shareholder information form must be printed separately; the statement period should cover from the first purchase date until the date of full sale or the date the statement is printed). 2. A copy of their ID card.

**Attorney Fees**

If a lawyer is appointed for representation, such cases are generally handled on a contingency fee basis. No fees are charged upfront; lawyer fees are paid as a percentage of the compensation amount only upon a successful outcome. No fees are payable if no compensation is awarded.

(This article is contributed by Lawyer Chen Yuxia of Yingke Law Firm (Hangzhou) and does not represent the views of Sina Finance. Lawyer Chen Yuxia of Yingke Law Firm (Hangzhou) has successfully represented investors in securities misrepresentation liability disputes against dozens of listed companies including Chaohua Technology, Shenglida, Sanfangxiang, Egint Optoelectronics, Tianxiang Environment, Xiangyuan Culture, Zhongbing Hongjian, Zhangzidao, Changyuan Group, Suoling Shares, Zhongrun Resources, Yan'an Bikang, Dadongnan, Lianjian Optoelectronics, and others.)

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