Investors who suffered losses may register their claims through the relevant platform. On March 27, 2026, ST Deren (002055) announced it had received an "Administrative Penalty Decision" issued by the Shenzhen Securities Regulatory Bureau. Legal counsel specializing in securities claims noted that this confirms the company's misconduct involving false statements, and affected investors remain eligible to file for compensation.
Lawsuits representing ST Deren investors, led by attorney Xu Feng, have been accepted for filing multiple times by the Shenzhen Intermediate People's Court. The cases are currently awaiting further scheduling by the court, while the legal team continues to process subsequent claims and accept new mandates from additional investors.
The penalty decision revealed that ST Deren committed the following violations: From 2020 to 2021, due to financial difficulties experienced by key customers, the company faced cash flow constraints. Qiu Jianmin, the actual controller and then chairman and president of ST Deren, used personal funds and external loans to provide financial support to certain customers, former subsidiaries, and equipment suppliers. These funds were used to repay historical debts owed to ST Deren. Qiu Jianmin did not disclose the true source of these funds to the company, leading ST Deren to falsely report repayments of CNY 394.58 million in 2020 and CNY 112.96 million in 2021. The company also understated credit impairment losses by CNY 371.15 million and CNY 66.39 million, respectively, and understated capital reserves by CNY 321.32 million and CNY 434.28 million in the corresponding years.
In June 2022, Qiu Jianmin arranged for a subsidiary of ST Deren to indirectly provide funds to an associated company in the form of advance payments for goods. These funds were used to repay financial assistance previously extended by ST Deren. This resulted in falsely reported repayments of CNY 26.84 million in the first half of 2022 and an understatement of credit impairment losses by CNY 5.06 million.
These actions caused ST Deren's 2020 and 2021 annual reports, as well as its 2022 semi-annual report, to contain false records. Additionally, a document related to a private share issuance disclosed on January 11, 2022, which referenced financial data from the 2020 annual report and the period from January to September 2021, also contained inaccuracies.
Legal analysis suggests that investors who purchased ST Deren shares between August 27, 2020, and December 30, 2023, and sold or continued to hold them after December 30, 2023, may be entitled to seek compensation based on these established violations of securities law.