① ST Starter, *ST Furun, Lianxiang Co., Ltd., and Kang Longda were issued a warning letter by the Zhejiang Securities Regulatory Bureau due to inaccurate disclosure of the 2023 performance forecast; ② the four companies' performance forecasts were revised by varying degrees; ③ Among them, *ST Furun was punished for false records in the 2020 Report, 2021 Report, and 2022 Semi-Annual Report.
Financial Services Association, May 28 (Reporter Chen Kang) On the evening of May 28, four listed companies in Zhejiang were issued a warning letter by the Zhejiang Securities Regulatory Bureau due to inaccurate disclosure of their (2023) performance forecasts. They were ST Start (603557.SH), *ST Furun (600070.SH), Lianxiang Co., Ltd. (603272.SH), and Kang Longda (). The industry sectors involved digital culture, clothing and home textiles, and household goods. 603665.SH
The revised performance forecasts of these four listed companies all showed varying degrees of decline. The biggest was ST, which disclosed the “2023 Annual Performance Pre-Loss Forecast” on January 31, which is expected to achieve net profit attributable to shareholders of listed companies -310 million yuan to -460 million yuan in 2023; on April 24, the company disclosed the “2023 Annual Results Forecast Correction and Apology Notice”, which is expected to achieve net profit attributable to shareholders of listed companies of around -660 million yuan in 2023, with a downgrade range of 200 million yuan to 350 million yuan.
Another ST company*ST Furun just received an administrative penalty decision from the Zhejiang Securities Regulatory Bureau on May 20. Due to false records in the 2020 report, 2021 report, and 2022 semi-annual report, the total amount of revenue inflated by 717 million yuan in two and a half years, and inflated operating costs by a total of 716 million yuan. Zhejiang Furun and the company's then-current chairman, vice chairman, director and related responsible persons were fined.
According to the 2023 performance forecast correction and apology notice issued by ST Furun on April 16*ST, according to preliminary estimates by the finance department after the correction, the company is expected to achieve operating income of about 93.5 million yuan in 2023, and the company's net profit attributable to shareholders of listed companies in 2023 is estimated to be -560 million yuan. According to the previously released performance forecast, the company expects revenue of about 130 million yuan, net profit of 400 million yuan to -460 million yuan, and the net profit gap range is 100 million yuan to 160 million yuan.
After the release of the 2023 annual report, *ST Furun triggered a delisting risk warning. Starting April 30, the stock abbreviation was changed from “ST Furun” to “**ST Furun”, that is, due to negative net profit triggering and revenue of less than 100 million yuan.
Among the other two companies, Kang Longda originally predicted that net profit attributable to shareholders of listed companies in 2023 would be -135 million yuan to -92 million yuan, then revised to -210 million yuan to -160 million yuan. Lianxiang Co., Ltd. originally predicted that net profit attributable to shareholders of listed companies would be RMB 7.092 million to RMB 10.208 million in 2023, but on April 23, the company disclosed that the “2023 Annual Performance Forecast Correction Notice” is expected to achieve net profit attributable to shareholders of listed companies of -15.241,400 yuan to -124.702 million yuan.
As for the main reason for the correction in the performance forecast, Kang Longda stated that “the company adjusted the subsidiary's deferred income tax assets and adjusted the bad debt preparation calculation.” Lianxiang Co., Ltd. listed five reasons, including “incorrect interpretation of the government subsidy documents received”, “additional inventory to prepare for price drops”, and “need to make up for impairment of goodwill.”
The reason for ST's initial performance forecast correction was “the company corrected early accounting errors, which mainly affected the preparation of accounts for deferred income tax assets and bad debts”; *ST Furun's correction was that “some operating income confirmed that operating income needed to be reduced by 35 million yuan according to the net amount method, and credit impairment losses were increased by about 85 million yuan according to the Thai Index's actual account age”.
For the chairman and relevant senior personnel of the above companies, the Zhejiang Securities Regulatory Bureau decided to take separate supervisory and administrative measures to issue warning letters against them and record them in the securities and futures market integrity file.