KN(SH:603111) Shang Hai Zheng Quan Bao·2025-07-22 19:15Core Viewpoint - Nanjing Kanni Electromechanical Co., Ltd. is currently facing multiple lawsuits from investors regarding securities false statement liability, stemming from a previous administrative penalty by the China Securities Regulatory Commission for financial misconduct by a related company [1][2]. Summary by Sections Basic Situation of the Lawsuit - The company received an administrative penalty from the China Securities Regulatory Commission on July 30, 2021, due to financial fraud by Guangdong Longxin Technology Co., Ltd. from 2015 to 2017, which led to false disclosures in the company's restructuring reports [1]. - A total of 17 investors have filed lawsuits against the company for securities false statement liability [1]. First Instance Civil Judgment Situation - The company has received first-instance civil judgments for 16 investor lawsuits, with the total compensation amounting to 50,053,463.01 yuan [3]. - Among these, one judgment also holds Guotai Junan Securities Co., Ltd. liable for 547,746.32 yuan in compensation, sharing 50% of the responsibility [3]. Compensation and Appeals - The company has completed compensation payments totaling 1,394,839.17 yuan to nine investors from the first-instance judgments [4]. - The company has appealed one judgment and is seeking to overturn it, requesting that the plaintiff bear all litigation costs [4]. - Another judgment is pending appeal, and the company plans to appeal it as well [5]. Impact on Financials - The company has provisioned for potential losses related to these lawsuits, totaling 216,031,343.66 yuan, which is expected not to significantly impact current or future profits [5][6]. - The company will continue to monitor the lawsuits and handle investor claims in accordance with legal requirements [6].