Yongan Forestry sues four former executives for 32.76 million yuan over false financial data
Yongan Forestry (000663.SZ) filed a lawsuit on September 23 against four former executives—Su Jiaxu, Chen Songbai, Chen Zhenzong, and Wu Jingxian—seeking 32.76 million yuan in damages. The suit follows a 2021 CSRC ruling that the company's 2016-2017 annual reports contained false financial data. After a Fuzhou court ordered the company to pay 31.73 million yuan to investors in 2024, with the executives jointly liable, and appeals were exhausted by 2026, Yongan Forestry now seeks reimbursement for the CSRC fine, investor compensation, and litigation costs. The case has been accepted but not yet tried.
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Common ground
- The former directors who committed fraud should face personal consequences for their actions.
- The legal process did work in stages: regulators found the violation, courts ordered compensation, and the company is now suing the former directors.
- The 32.76 million yuan being sought is very close to the 31.7 million paid in investor compensation plus legal costs.
- Only 17 investors received compensation, which is a small number compared to the thousands of shareholders who lost money.
- The company's stock has fallen nearly 20% this year and it is struggling financially.
Points of contention
- Whether this lawsuit proves China's legal system is maturing or just shows the system reacting after a major failure.
- Whether the lawsuit is a genuine attempt at accountability or just a way for the company to recover cash from scapegoats.
- Whether the small number of compensated investors is due to a flawed system or just the normal difficulty of securities litigation.
- Whether the colonial history and local political ties in Fujian's forestry sector are relevant to understanding this case.
- Whether the company should be seen as a victim of its former directors or as a perpetrator that benefited from the false reports.
Blind spots
- No one fully explained why the company's internal controls, audit committee, and external auditors failed to catch the false financial reports for two straight years.
- The debate largely ignored the thousands of ordinary small shareholders—like retirees and local workers—who lost money and have no way to get it back.
- The fact that the lawsuit seeks only to recover the exact amount paid out, not punitive damages, suggests it is about balancing the books rather than punishing wrongdoing.
WorldAttention’s read
This case shows a system that can respond after a fraud is discovered, but it also reveals deep flaws. The legal process worked step by step—regulators found the problem, courts ordered compensation, and the company is now suing its former directors. However, the fraud went on for two years before anyone caught it, which points to serious failures in internal controls and oversight. The 32.76 million yuan the company wants to recover is almost exactly what it paid out to investors, which makes this look more like an effort to get its money back than a real punishment. Only 17 investors got compensated, leaving thousands of ordinary shareholders—many of them retirees and local workers—with nothing while the stock keeps falling. The current board, which was in charge when the false reports were filed, is using this lawsuit to shift blame onto a few former executives instead of taking responsibility for the company's own failures. In the end, this is a survival move by a struggling company, not a clear victory for investor protection.
Reporting timeline
Yongan Forestry Sues Four Former Executives for 32.76 Million Yuan Over Damages
Yongan Forestry (000663.SZ) announced on September 23 that it has filed a lawsuit against four former senior executives—Su Jiaxu, Chen Songbai, Chen Zhenzong, and Wu Jingxian—for damages totaling approximately 32.76 million yuan. The lawsuit stems from a 2021 China Securities Regulatory Commission (CSRC) ruling that the company's 2016 and 2017 annual reports contained false financial data, with the four executives held directly responsible. In 2024, a Fuzhou court ordered the company to pay 31.73 million yuan in compensation to investors for securities misrepresentation, with the four executives jointly liable. After the company's appeal was rejected by the Fujian High Court in 2025 and the Supreme People's Court in 2026, Yongan Forestry is now seeking reimbursement from the executives for the CSRC fine (500,000 yuan), the investor compensation (31.73 million yuan), and litigation costs. The company's half-year report showed a net loss of 19.34 million yuan and a sharp decline in operating cash flow.
Read sourceYongan Forestry Sues Four Former Executives for 32.76 Million Yuan Over Damages
Yongan Forestry Co., Ltd. has filed a lawsuit against four former senior executives—Su Jiaxu, Chen Songbai, Chen Zhenzong, and Wu Jingxian—seeking approximately 32.76 million yuan in compensation. The legal action stems from a 2021 China Securities Regulatory Commission (CSRC) ruling that the company's 2016 and 2017 annual reports contained false financial data, for which the four executives were held responsible. In 2024, a Fuzhou court ordered the company to pay 31.73 million yuan in compensation to investors for securities misrepresentation, with the four executives jointly liable. The judgment was upheld by the Fujian High Court in 2025 and the Supreme People's Court rejected the company's retrial application in 2026. Yongan Forestry claims the executives failed to fulfill their obligations under the final judgment, prompting the company to sue them for the 500,000 yuan CSRC fine, the 31.73 million yuan investor compensation, and legal costs. The company's half-year report shows a net loss of 19.34 million yuan and a sharp decline in operating cash flow.
Read sourceYongan Forestry Sues Former Executives for 32.76 Million Yuan in Compensation
On September 23, Yongan Forestry (000663) announced it has filed a lawsuit in Yongan People's Court against four former executives—Su Jiaxu, Chen Songbai, Chen Zhenzong, and Wu Jingxian—for damages related to corporate responsibility disputes. The court has accepted the case but not yet scheduled a hearing. The lawsuit stems from a 2021 Fujian Securities Regulatory Bureau decision that found the company's 2016 and 2017 annual reports contained false financial records, with the four defendants identified as directly responsible managers. The bureau fined the company 500,000 yuan and each defendant 200,000-300,000 yuan. Subsequently, Yongan Forestry was sued by investors for securities misrepresentation, and the Fujian High People's Court ordered the company to pay 31.7255 million yuan in compensation, which it has already paid. The company now seeks to recover 32.7645 million yuan from the defendants, including the fines, compensation, and litigation costs. The outcome of this pending case may affect the company's current or future profits.
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Yongan Forestry Sues Four Former Directors for 32.76 Million Yuan Over False Disclosures
Yongan Forestry (SZ000663) has filed a lawsuit against four former directors and executives—Su Jiaxu, Chen Songbai, Chen Zhenzong, and Wu Jingxian—seeking 32.7645 million yuan in compensation for losses caused by their alleged misconduct. The lawsuit stems from a 2021 securities fraud case where the China Securities Regulatory Commission found Yongan Forestry's 2016 and 2017 annual reports contained false financial data. The four individuals were held directly responsible. In 2024, a court ordered the company to pay 31.7255 million yuan to 16 investors, with the four defendants bearing joint liability. After they failed to comply, Yongan Forestry sued them in Yongan City People's Court to recover the compensation, fines, and legal costs. The case has been accepted but not yet tried. The company reported a net loss of 19.33 million yuan in the first half of 2026, with revenue up 14.73% year-on-year to 151 million yuan. Its stock has fallen about 19.78% year-to-date.
Read sourceYongan Forestry Sues Former Executives for 32.76 Million Yuan in Compensation
On September 23 evening, Yongan Forestry announced it has filed a lawsuit against four former executives, including former directors Su Jiaxu, Chen Songbai, Chen Zhenzong, and Wu Jingxian, seeking 32.7645 million yuan in compensation. The lawsuit stems from a 2021 Fujian Securities Regulatory Bureau decision that found the company's 2016 and 2017 annual reports contained false financial data. The bureau fined the company 500,000 yuan and imposed individual fines on the four executives totaling 1 million yuan. Subsequently, Yongan Forestry was sued by investors for securities misrepresentation liability, and the Fujian Higher People's Court ordered the company to pay 31.7255 million yuan in compensation, which it has already paid. The company now seeks to recover these losses from the former executives, including the regulatory fines, investor compensation, and litigation costs. The case has not yet been heard, and its impact on the company's current or future profits remains uncertain.
Yong'an Forestry Sues Four Former Directors for 32.76 Million Yuan Over False Statements
On September 23, Yong'an Forestry announced it has filed a lawsuit against four former directors and executives, seeking compensation of 32.76 million yuan for losses caused by their misconduct. The lawsuit stems from a securities false statement case: in 2021, the China Securities Regulatory Commission found the company's 2016 and 2017 annual reports contained false financial data. The four defendants—Su Jiaxu, Chen Songbai, Chen Zhenzong, and Wu Jingxian—were held directly responsible. In 2024, a court ordered the company to pay 31.73 million yuan in compensation to 17 investors, with the four defendants bearing joint liability. After they failed to comply, Yong'an Forestry sued them. Separately, the company's 2026 half-year report showed revenue of 151 million yuan, up 14.73% year-on-year, but net loss widened to 19.34 million yuan. The stock has fallen nearly 20% year-to-date. The case has not yet been heard, and the impact on profits remains uncertain.
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