New Legal Actions Filed for Shareholder Compensation Claims Against Two Listed Companies

Deep News
Jun 04

Shareholders who have suffered losses can register their claims through the appropriate legal channels.

Hainan Poly Pharm.Co.,Ltd. (SHE: 300630) and Shenzhen Zhongzhuang Construction Group Co.,Ltd. (SHE: 002822) are both facing new legal actions from investors seeking compensation.

New Case Filed for Hainan Poly Pharm.Co.,Ltd.

On June 2, 2026, legal representatives submitted another batch of investor compensation claims to the Haikou Intermediate People's Court related to alleged misrepresentation by Hainan Poly Pharm.Co.,Ltd. This follows previous cases where investors secured favorable first-instance court rulings. The legal team continues to file subsequent cases and is accepting new mandates from affected investors.

The company announced on March 21, 2025, that it had received a "Decision on Administrative Penalty" from the China Securities Regulatory Commission (CSRC) on January 4, 2025. The investigation found that the company's 2021 financial report overstated revenue by 514,604,184.72 yuan, representing 34.11% of the disclosed figure for that year, with corresponding overstated costs of 206,585,749.23 yuan, leading to an overstatement of total profit by 308,018,435.49 yuan, or 65.88% of the disclosed amount. For 2022, revenue was overstated by 515,899,077.56 yuan (28.56% of disclosed revenue), with corresponding costs overstated by 128,481,820.04 yuan, resulting in an overstatement of total profit by 387,417,257.52 yuan, or 88.27% of the disclosed figure. Consequently, the company's 2021 and 2022 annual reports contained false records.

Legal counsel indicates that investors who purchased Hainan Poly Pharm.Co.,Ltd. shares between April 26, 2022, and April 17, 2024, and sold or continued to hold those shares after April 17, 2024, may still be eligible to file claims.

Additional Legal Action for Shenzhen Zhongzhuang Construction Group Co.,Ltd.

Separately, on May 29, 2026, a new batch of investor compensation claims against Shenzhen Zhongzhuang Construction Group Co.,Ltd. was accepted for filing by the Shenzhen Intermediate People's Court. This case also stems from alleged misrepresentation, and previous investor claims have resulted in favorable first-instance judgments. The legal team is proceeding with filing further cases and continues to accept new mandates.

The company announced on April 19, 2025, that it had received a "Decision on Administrative Penalty." The investigation revealed that the company and its subsidiary, Shenzhen Zhongzhuang Municipal Garden Engineering Co., Ltd., accounted for certain internal contracting projects as self-operated projects, leading to underreported costs and inflated profits. From 2017 to 2021, the company overstated profits by 18.3344 million yuan, 12.9245 million yuan, 43.9864 million yuan, 13.0219 million yuan, and 16.1039 million yuan, respectively. These amounts represented 9.06%, 5.26%, 14.74%, 3.91%, and 8.88% of the total profit disclosed for each corresponding period. This resulted in false records in the company's annual reports from 2017 to 2021. The inflated financial data from these reports was subsequently referenced in several key company issuance documents published in 2019, 2020, and 2021.

Based on the previous successful judgments, legal counsel believes investors who purchased Shenzhen Zhongzhuang Construction Group Co.,Ltd. shares between April 16, 2018, and December 16, 2023, and sold or continued to hold those shares after December 16, 2023, may still be eligible to initiate claims for compensation.

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