Koal(SH:603232) Mei Ri Jing Ji Xin Wen·2025-08-13 12:26Core Viewpoint - The financial fraud case involving Zeda Yisheng continues to have repercussions, leading to a series of compensation lawsuits against Geer Software and other involved parties [2][3]. Group 1: Legal Proceedings - Geer Software has received notifications from the Shanghai Financial Court regarding lawsuits filed by Tianjian Accounting, Dongxing Securities, and Kangda Law Firm, seeking compensation for losses [3]. - The three intermediary institutions are pursuing claims against 37 companies and 2 individuals, requesting a total of approximately 1.23 billion yuan, 2.15 billion yuan, and 0.33 billion yuan in principal and interest [3]. - Zeda Yisheng was previously penalized by the China Securities Regulatory Commission for fraudulent issuance and information disclosure violations, leading to a total compensation payout of about 493 million yuan to investors [2][3]. Group 2: Financial Impact - Geer Software stated that the ongoing lawsuits have not yet gone to trial, making it difficult to assess their impact on the company's current or future profits [4]. - The transactions involved in the lawsuits were determined to have a minor effect on the accuracy of Geer Software's financial statements from 2018 to 2021, thus no retrospective adjustments are necessary [4]. Group 3: Historical Context - Geer Software's historical announcements reveal that the company inflated its net profit by 2.75 million yuan, 2.51 million yuan, and 773,800 yuan from 2018 to 2020, while reducing its net profit by 1.90 million yuan in 2021 [5]. - The Shanghai Securities Regulatory Bureau issued a warning letter to Geer Software and related personnel in 2023 regarding these financial discrepancies [5]. Group 4: Legal Framework and Defense - Legal experts indicate that for the intermediary institutions to exercise their right of recourse, they must prove that the parties being pursued had faults and that there is a direct causal relationship between their actions and the damages incurred [6]. - The concept of "no commercial substance" in transactions may not be sufficient for a successful claim unless it can be shown that the involved parties knowingly participated in fraudulent activities [7]. Group 5: Risk Mitigation Strategies - Geer Software is taking proactive measures to strengthen the understanding of relevant laws and regulations among its directors, supervisors, and senior management [8]. - The company is also enhancing its internal control systems to improve operational compliance and risk identification capabilities [8].