First, the supervision shot! Two investigations were opened during the year
On December 13th, Modern Avenue Fashion Group shares ***ST Modern, 002656SZ) once again received the "Notice of Case Filing" issued by the China Securities Regulatory Commission (CSRC) because the company was suspected of violating laws and regulations in information disclosure. At the end of May this year, ST Modern received the "Notice of Case Filing" issued by the China Securities Regulatory Commission for failing to disclose the 2022 annual report within the statutory deadline.
In addition, ST Modern was also named by the regulator because of this matter, and combing through the past announcements found that the "2022 Annual Performance Forecast" disclosed by ST Modern on January 30 this year shows that the company's net profit attributable to the parent company in 2022 is expected to be a loss of 11.2 million yuan to 16.8 million yuan, but the actual loss of net profit in 2022 disclosed in the company's annual report is 4140120,000 yuan. The Shenzhen Stock Exchange issued a regulatory letter to the company on July 27 due to the large difference between the estimated net profit and the audited net profit disclosed in the ST modern performance forecast, as well as the company's retrospective restatement of the 2021 financial statements. ST Modern and Chairman Lin were also issued a warning letter by the Guangdong Securities Regulatory Bureau in August.
2. The previous regulatory penalties have triggered shareholder litigation claims
In addition to being involved in a number of litigation and arbitration cases, ST Modern has also faced a large number of investor lawsuits and claims, and this round of investor prosecution is not related to the regulatory investigation in the first half of the year, and the key reason is that the company was formally punished by the Guangdong Supervision Bureau of the Securities Regulatory Commission in 2022. On January 17 of that year, the company received the "Administrative Penalty Decision" issued by the China Securities Regulatory Commission, and it was found that ST Modern violated the law because it failed to disclose external guarantees in a timely manner, and there were major omissions in the disclosure of relevant information in regular reports; Failure to disclose in the periodic report the related party transactions of the controlling shareholder's non-operating funds. In response to the shareholder lawsuit caused by this punishment, the Guangzhou Intermediate People's Court has made a judgment, the investor won the lawsuit in the first instance, and Modern Avenue should be liable for the plaintiff's losses, but ST Modern has appealed, and many batches of cases have entered the second instance.
In addition, the company's current operating situation is unsatisfactory, in recent years, revenue has declined year after year, and is in continuous losses, in the first three quarters of 2023, the company achieved a total operating income of 21.5 billion yuan, a year-on-year increase of 2659%；The net profit loss attributable to the parent company was 5515110,000 yuan, a year-on-year change from profit to loss.
IIIA new claimable range has been added for rights protection
Liu Peng, a lawyer at Shanghai Huzi Law Firm, said that according to the "** Law" and several provisions on false statements, injured investors can file a lawsuit against ST Modern on the grounds of false statements and require them to compensate for investment losses, including investment difference losses, commissions, and stamp duty.
In view of the fact that ST Modern has been investigated and punished many times, the unit has two claimable ranges, and those who meet any of them can sign up to participate in the claim
1) Sold or held after 10 January 2020 during the period from April 12, 2018 to January 9, 2020 and lost money;
2) Tentatively scheduled to **ST Modern before December 13, 2023 (including the day), and sell or still hold after December 14, 2023 and lose money.
Eligible investors can register for a claim in the "Shareholder Claim Treasure"** or the official website.