On the morning of November 17, 2021, the second instance hearing for a shareholder right-to-information dispute case represented by our firm was held at the Shanghai Second Intermediate People’s Court.

In this case, the annual audit report provided by the company contained significant errors in the application of accounting standards and the disclosure of financial data, failing to objectively and accurately reflect the company’s actual operating conditions. Our lawyers, representing the company’s shareholder, filed a lawsuit to assert the shareholder’s right to information. The first instance court ruled in favor of our client’s claims.

During the second instance hearing, the parties debated key issues, including whether it is lawful for the parent company of an enterprise group to apply small enterprise accounting standards, and whether shareholders can request access to or copies of the company’s pre-restructuring documents.

The court will issue a final ruling at a later date.