Hua Hong Jitong's financial fraud or forced delisting, which investors have the chance to claim?

On the evening of August 4, Hua Hong Jitong (300330) announced that the company received the "Administrative Penalty Prior to Administrative Penalties" issued by the Shanghai Securities Regulatory Bureau. According to the fact that the "Notice" was found to be suspected of illegal, the company's net profit after retrospective adjustment in 2017 was negative, resulting in the company's four consecutive years of net profit in 2015-2018, and the company's stock may be forced to delist major illegal.

According to the "Notice", the facts of Hua Hong Ji Tong's suspected illegal facts are as follows: In 2017, Hua Hong Jitong prepared for bad debts through false trade and lack of accounts, which led to its disclosure of its 2017 annual report disclosure. There are false records of financial information.

The Shanghai Securities Regulatory Bureau intends to decide: to make corrections, give warnings to Hua Hong, and impose a fine of 500,000 yuan; warn the three responsible persons, and pay a fine of 30,000 to 200,000 yuan.

At the same time, Hua Hong Jitong issued an announcement saying that according to the fact that the facts of the suspected illegal were found, the company increased its operating profit at the end of 2017 of 8.969 million yuan. The annual report showed that the company's net profit on December 31, 2017 was 5.9491 million yuan. The net profit in 2015 and 2016 was negative, and the net profit after retrospective adjustment in 2017 was negative. The net profit in 2018 was negative, which led to the company's four consecutive years of net profit in 2015-2018. Article 4 (3) of the Implementation Measures for the Implementation of the Implementation of the Observation of the Law of the Law "Measures for the Implementation Measures for the Purchase" (3), items stipulated in item (3), the company's shares may be implemented by major illegal forced delisting.

The announcement shows that Hua Hong Jitong's stock was suspended one day on August 5, 2022, and will be resumed on August 8, 2022. The company's stock is referred to as "Hua Hong Ji Tong" to "*ST Jitong".

Lawyer Wu Lijun, Shanghai Oriental Cambridge Law Firm, said that every time from April 12, 2018 to November 26, 2021, Hui Hong Jitong, and still held the stock when the stock was closed on November 26, 2021 Investors can register through the public account "Public Securities News" (feature code: 18018) to participate in claims.

Lawyer Wu Lijun told reporters that on August 5th, his lawyer team submitted some investors to the Shanghai Financial Court to sue Huihong's financial fraud case. The court has received the application in the review.

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