In recent years, there has been a continuous net income loss.
On the evening of the 26th, Shenzhen Deren Electronic released an announcement that broke the market's calm. The company and one of its actual controllers, Qiu Jianmin, both received the "Notice of Investigation" issued by the China Securities Regulatory Commission on December 25, 2024, due to suspected violations of information disclosure laws and regulations. The China Securities Regulatory Commission decided to investigate the company and Qiu Jianmin.
As a result, at the market opening today, Shenzhen Deren Electronic's stock price plummeted, hitting the lower limit. This sharply contrasts with the stock closing at the upper limit just yesterday. The dramatic reversal from hitting the upper limit to the lower limit was like a roller coaster ride, truly shocking the market.
The founder is under investigation.
According to Shenzhen Deren Electronic's disclosure, after receiving the "Notice of Investigation," the company immediately conducted a self-examination regarding the investigation and explained the main issues as follows:
On December 30, 2023, the company disclosed the "Announcement on the Shenzhen Securities Regulatory Bureau's Decision to Order Rectification of the Company." Upon investigation, the company had discrepancies between the recovery situation of accounts receivable disclosed in the semi-annual reports from the first half of 2020 to the first half of 2022 and the actual situation, and the financial report data for the relevant years was inaccurate.
In response to the above issues, Shenzhen Deren Electronic is actively rectifying. According to regulatory requirements, the company corrected relevant items in the 2020 and 2021 financial statements. Additionally, due to the impact of the aforementioned accounting errors on the opening balances of future annual financial statements, the company also made retrospective adjustments to the relevant financial statement items for the fiscal years 2022 and 2023.
On August 31, 2024, the company disclosed the audit report of the corrected 2020 financial statements, thus completing relevant internal rectification work and continuously implementing the work required by regulatory authorities.
In last night's announcement, Shenzhen Deren Electronic also stated that the company and Qiu Jianmin will continue to actively cooperate with the China Securities Regulatory Commission in various tasks, and the company will continue to monitor the progress of the above matters, strictly fulfilling its information disclosure obligations in accordance with regulatory requirements.
The company's current operation is normal, and the above matters will not have a significant impact on the company's operational activities.
In recent years, there has been a continuous net income loss.
It is worth noting that Shenzhen Deren Electronic's stock price has been quite volatile recently, with strong gains pushing the price up to three consecutive trading limits over a short period of six trading days from December 19 to 26, resulting in a cumulative increase of over 21%.
Public information shows that Shenzhen Deren Electronic is a company focused on the research, development, manufacturing, and sales of electronic connectors and precision components, with products widely used in home appliances, computers, communications, autos, and other fields, and it was listed on the Shenzhen Stock Exchange in 2006.
Qiu Jianmin, as the company's founder, established Shenzhen Baoshan Desheng Electronic Factory in 1989 and founded Shenzhen Deren Electronic in 1992, having long served as the company's Director and General Manager.
However, the significant rise in stock price cannot hide the performance concerns. From the financial data, Shenzhen Deren Electronic has seen a year-on-year decline in revenue over recent years, with net income deeply mired in losses.
In the first three quarters of 2024, the company achieved revenue of 3.875 billion yuan, a significant decrease of 23.07% year-on-year; the net income attributable to shareholders of the listed company reported a loss of 0.126 billion yuan, a staggering decline of 1643.39% year-on-year.
In 2023, the revenue was 5.987 billion yuan, with a year-on-year decline of 22.79%; the net income reported a loss of approximately 0.203 billion yuan, a year-on-year reduction in losses of only 20.54%.
Looking at 2022, although the revenue was 7.755 billion yuan, which showed a slight increase of 2.21%, the net income still reported a loss of 0.256 billion yuan, with a reduction in losses of 56.77%.
At the same time, there was a shake-up in the company's senior management. In December, Vice President Li Zheng submitted his resignation for personal reasons and will no longer hold any positions in the company or its holding subsidiaries after leaving. Coincidentally, Vice President Wang Hai also resigned from his position in November for personal reasons.
Although Shenzhen Deren Electronic stated that the resignations of these two individuals would not affect the company's normal operations and management, during such tumultuous times, personnel changes undoubtedly add more uncertainty to the company's future.
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