On July 4, 2023, Yihua Life Technology Co., Ltd. (hereinafter referred to as the "Company" and "Yihua Life") disclosed the progress of the litigation involving ** disputes.
As of July 4, 2023, the total amount of litigation involved in the litigation matters involving ** dispute matters known to the Company was approximately RMB404,427,07076 yuan.
On November 3, 2021, it was announced that Yihua Life and related parties received the Administrative Penalty Decision ([2021] No. 81) and the Market Prohibition Decision ([2021] No. 18) from the CSRC.
According to the China Securities Regulatory Commission, Yihua Life has the following illegal facts:
1. There were false records in the periodic reports from 2016 to 2019: (1) the annual reports from 2016 to 2019 inflated operating income and profits; (2) Inflating monetary funds in the annual reports from 2016 to 2018 and the semi-annual reports in 2019.
2. There are major omissions in the annual reports from 2016 to 2019.
According to the ** Law and the judicial interpretation of the Supreme People's Court, if a listed company causes losses to investors due to illegal information disclosure, the injured investors can sue for compensation in accordance with the law, and the scope of claims includes: investment difference, commission, and stamp duty.
Regarding the conditions of the claim, Guangzhou Janssen lawyer believes that tentatively: during the period from April 22, 2017 to April 25, 2020, **Yihua Life** (600978), and after April 26, 2020 (inclusive) sold or continued to hold the ** and suffered losses, investors can choose to file a claim.
Of course, this is only the investor's right to sue, and whether there is a causal relationship and whether it can be supported still needs to be determined by the court.
Although Yihua Life** has been delisted, it does not affect investors to file claims for losses caused by its illegal disclosure.
It is worth noting that the statute of limitations for litigation is three years under the law. If investors do not assert their rights in a timely manner, they are likely to lose their right to prevail due to the expiration of the statute of limitations.