Nan Fang Du Shi Bao·2026-01-29 09:25Core Viewpoint - Guolian Minsheng (601456.SH) announced that its wholly-owned subsidiary, Guolian Minsheng Securities Underwriting and Sponsorship Co., Ltd., has appealed a first-instance judgment regarding a securities false statement liability dispute, which has now entered the second-instance procedure [2] Group 1: Legal Proceedings - In August 2025, a first-instance judgment was issued in a securities false statement liability dispute involving Longli Biological Technology Co., Ltd. (Longli Biological), where the defendants, including Longli Biological and Guolian Minsheng Securities Underwriting and Sponsorship, were ordered to compensate 1,618 plaintiffs over 274 million yuan [2][5] - Guolian Minsheng Securities Underwriting and Sponsorship was held liable for up to 5% of the total compensation amount [2][7] - The company argues that its actions do not meet several elements of the securities false statement tort liability and therefore should not bear compensation responsibility [2][7] Group 2: Background on Longli Biological - Longli Biological was listed on the Shenzhen Stock Exchange on July 28, 2011, and was once known as the "first stock of biofuels" [4] - The company faced significant issues leading to its delisting, including systematic fraud that was highlighted by the China Securities Regulatory Commission (CSRC) [4] - In 2021, the CSRC fined Longli Biological 600,000 yuan for profit inflation from 2015 to mid-2017, and imposed fines totaling 3.38 million yuan on 18 responsible parties [4] Group 3: Financial Implications - The plaintiffs' claims include investment loss compensation totaling 274 million yuan and additional claims for legal fees amounting to 809,000 yuan [5] - Guolian Minsheng Securities Underwriting and Sponsorship is required to pay within 30 days of the judgment's effectiveness, covering 5% of the plaintiffs' losses [7]