Core Viewpoint - Longli Biological, which engaged in financial fraud and was delisted after nine years, has recently faced a first-instance judgment in a securities false statement liability dispute, with the court ordering compensation for 1,618 investors [1][9]. Group 1: Legal Proceedings - The first-instance judgment revealed that 1,618 plaintiffs collectively hold investment loss claims amounting to 274 million yuan and legal fees of 809,000 yuan against Longli Biological [6]. - The defendant Cheng Shaobo is jointly liable for the debts owed by Longli Biological, while other defendants share joint liability within a certain percentage range, with Guolian Minsheng Securities bearing 5% of the joint liability [6][4]. Group 2: Company Background and Fraud Details - Longli Biological, established in June 2001, produces functional sugars and starches from corn and has been involved in biomass comprehensive utilization [7]. - The company was listed on the Shenzhen Stock Exchange in 2011, with Huaying Securities as its sponsor [7]. - Longli Biological faced delisting due to negative net assets for two consecutive years (2017 and 2018) and received audit reports that could not express an opinion, leading to its stock suspension in May 2019 and formal delisting in July 2020 [7][8]. Group 3: Regulatory Actions - In January 2018, the China Securities Regulatory Commission (CSRC) initiated an investigation into Longli Biological for suspected information disclosure violations [8]. - The CSRC identified Longli Biological as a typical case of financial fraud, revealing that from 2015 to mid-2017, the company inflated assets by nearly 500 million yuan, reduced liabilities by over 1.7 billion yuan, and inflated profits by approximately 140 million yuan [8]. - In January 2021, the CSRC issued administrative penalties against Longli Biological, including a fine of 600,000 yuan and a 1.5 million yuan fine against its actual controller Cheng Shaobo [8].