Xin Lang Cai Jing·2025-12-11 07:46Core Viewpoint - Left River Technology (300799) is facing legal claims from investors due to false statements that inflated its revenue and profits, leading to significant discrepancies in its financial reports for 2023 [2][4]. Group 1: Legal Proceedings - The law firm Shanghai Jucheng has submitted multiple claims to the Beijing Financial Court on behalf of investors against Left River Technology, with ongoing efforts to accept more claims [1][3]. - The firm is currently awaiting the court's next steps regarding the claims [3]. Group 2: Regulatory Findings - On February 11, 2025, Left River Technology received an administrative penalty from the Beijing Regulatory Bureau of the China Securities Regulatory Commission, confirming violations related to false business activities [2][4]. - The company’s subsidiary, Chengdu Beizhong Network Chip Technology Co., Ltd., engaged in a transaction that involved selling 400 network data processing chips for 12.61 million yuan, which was later sold for 13 million yuan to another company, with the transaction orchestrated by company executives [4]. Group 3: Financial Impact - The false business activities led to inflated reported revenues of 11.16 million yuan and profits of 10.71 million yuan across the first three quarters of 2023, with the inflated revenue representing 77.33%, 48.50%, and 33.09% of the respective quarterly reports [2][4]. - The inflated profits accounted for 29.36%, 13.66%, and 8.24% of the total profits reported in the same periods [2][4]. Group 4: Investor Claims - Investors who purchased Left River Technology shares between April 28, 2023, and December 2, 2023, and sold or held the shares after December 2, 2023, are eligible to initiate claims for compensation [5].