Legal Claims Against Deren Electronic Progress as Court Accepts New Case, Victory Achieved in Pengdu Agriculture Lawsuit

Deep News
Mar 11

Investors who have suffered losses can register their claims on the Sina Investor Rights Protection platform.

On March 10, 2026, a new investor lawsuit against Shenzhen Deren Electronic Co.,Ltd. (002055) for misrepresentation, represented by lawyer Xu Feng from Shanghai Jiucheng Law Firm, was accepted by the Shenzhen Intermediate People's Court.

Lawyer Xu Feng has previously secured court acceptance for multiple investor claims against Deren Electronic. These cases are currently awaiting the court's next steps, while the legal team continues to work on filing subsequent cases and is still accepting new mandates from affected investors.

On December 31, 2025, Deren Electronic announced it had received a Prior Notice of Administrative Penalty from the Shenzhen Regulatory Bureau of the China Securities Regulatory Commission. The investigation found the company涉嫌 the following violations:

From 2020 to 2021, due to operational difficulties faced by Deren Electronic's major clients, who were unable to repay debts, the company experienced a cash flow shortage. Qiu Jianmin, the actual controller and then Chairman and President of Deren Electronic, used his personal funds and external borrowings to provide financial support to the company's clients, former subsidiaries, and equipment suppliers. This support was used by these entities to repay historical debts owed to Deren Electronic. Qiu Jianmin failed to disclose the true source of these funds to Deren Electronic, leading the company to falsely report repayments of 394,584,426.91 yuan in 2020 and 112,960,100 yuan in 2021. This resulted in an understatement of credit impairment losses by 371,151,433.40 yuan and 66,393,093.51 yuan, respectively, and an understatement of capital reserve by 321,316,487.76 yuan and 434,276,587.76 yuan, respectively.

In June 2022, Qiu Jianmin directed a subsidiary of Deren Electronic to indirectly provide funds to an associate company of Deren Electronic under the guise of advance payments for goods. These funds were used to repay matured financial assistance loans from Deren Electronic, leading to falsely reported repayments of 26,836,923.99 yuan in the first half of 2022 and an understatement of credit impairment losses by 5,060,996.46 yuan. These actions resulted in false entries in Deren Electronic's 2020 Annual Report, 2021 Annual Report, and 2022 Semi-Annual Report.

Based on these violations, Lawyer Xu Feng believes that investors who purchased Deren Electronic stock between August 27, 2020, and December 30, 2023, and sold or continued to hold the stock after December 30, 2023, may still be eligible to file claims.

In addition to the progress in the Deren Electronic case, on March 6, 2026, an investor lawsuit against Pengdu Agriculture & Animal Husbandry Co.,Ltd. (002505), also represented by Lawyer Xu Feng, was accepted by the Changsha Intermediate People's Court. The legal team continues to accept new mandates from affected investors in this matter as well.

There is already a precedent for investors winning claims against Pengdu Agriculture. Investors who suffered losses due to the company's misrepresentation may still initiate claims.

On November 22, 2024, Pengdu Agriculture announced that the company and relevant responsible persons had received the "Administrative Penalty Decision." The investigation found the parties involved had committed the following violations:

Pengdu Agriculture failed to disclose in a timely manner, as required by law, the non-operating capital occupation by its controlling shareholder. The company's 2020 Annual Report, 2021 Semi-Annual Report, 2021 Annual Report, 2022 Semi-Annual Report, and 2022 Annual Report contained significant omissions.

According to Lawyer Xu Feng, who specializes in securities litigation, investors who purchased Pengdu Agriculture stock between April 29, 2021, and August 15, 2024, and sold or continued to hold the stock after August 15, 2024, may still be eligible to file claims. Legal fees are typically contingent upon successful recovery for the investor.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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