ROYAL GROUP(002329) Chang Jiang Shang Bao·2025-04-02 00:32Core Viewpoint - Huangshi Group is facing regulatory scrutiny due to information disclosure violations, with the China Securities Regulatory Commission (CSRC) initiating an investigation, while the company anticipates significant losses in 2024 [1][2][3] Financial Performance - The company expects a net loss of 620 million to 680 million yuan for 2024, with a non-recurring net profit loss of 494 million to 554 million yuan [1][7] - Over the past five years, Huangshi Group has reported continuous losses in non-recurring net profit, totaling 1.463 billion yuan [8] - In 2022 and 2023, the company saw some recovery, with revenues of 2.891 billion yuan and 2.893 billion yuan, reflecting year-on-year growth of 12.54% and 0.07% respectively [7] Regulatory Issues - The CSRC issued a notice of investigation to Huangshi Group on March 28, 2024, due to suspected violations of information disclosure laws [1][2] - The company failed to disclose a supplementary agreement related to a partnership, which led to a lawsuit and subsequent regulatory action [3][4] Business Segments - Huangshi Group operates in the dairy sector, focusing on water buffalo milk and related products, and has a full industry chain from pasture planting to milk processing and sales [2] - The dairy segment has shown improvement, with a doubling of net profit and a 5% year-on-year increase in revenue, excluding the impact of divesting a subsidiary [8][9] Strategic Initiatives - The company is investing in solar energy projects, aiming to leverage existing facilities for photovoltaic resource utilization, with a planned investment of 10 billion yuan for solar cell production [6] - Huangshi Group is also involved in upgrading its water buffalo breeding projects, which are part of significant agricultural initiatives under the Belt and Road Initiative [9]