GINWA(SH:600080) Xin Lang Zheng Quan·2025-05-28 10:35Core Viewpoint - The chairman of Jinhua Co., Xing Yajiang, is under investigation for stock disclosure violations, leading to a significant fine of 3.5 million yuan, highlighting a series of governance and financial issues within the company [1][2]. Group 1: Chairman's Involvement and Regulatory Actions - Xing Yajiang was placed under criminal detention in April 2024 but reported to the company only four months later, resulting in severe disclosure delays [2]. - The Shaanxi Securities Regulatory Bureau criticized Xing for failing to fulfill his duties, issuing a personal fine of 3.5 million yuan, marking the second major penalty since the investigation began [2]. Group 2: Financial Irregularities and Mismanagement - Jinhua Co. transferred 52 million yuan to a company controlled by the chairman through prepayments, indicating typical related-party fund occupation [3]. - The company misappropriated fundraising for stock trading, ultimately needing to borrow 30 million yuan from individuals to cover losses [3]. - The 2023 third-quarter report concealed a loss of 4.99 million yuan, falsely reporting a profit of 3.39 million yuan, reflecting a 247% discrepancy [3]. Group 3: Audit Concerns and Project Delays - The auditing firm issued a non-standard opinion for the 2024 report, highlighting three major risks: questionable prepayments of 30.03 million yuan, uncertainty regarding the pledge of 39.5 million yuan in deposits, and delays in a 600 million yuan new factory project initiated in 2018 [4]. - These irregular transactions coincided with the period when the Xing family gained full control of the company [4]. Group 4: Product Dependency and Revenue Challenges - The company's primary product, Jintian Ge Capsule, accounts for 80% of revenue but faces innovation challenges, with R&D investment consistently below 3% of revenue from 2018 to 2024 [5]. - Revenue has fluctuated between 530 million and 580 million yuan over the past four years, with net profits showing a volatile pattern of losses and gains [5]. Group 5: Governance Crisis and Future Risks - The governance crisis at Jinhua Co. extends beyond individual cases, with the controlling family under judicial investigation and continuous warnings from auditing firms [6]. - The company is at a crossroads between potential delisting risks and the need for value reassessment, with systemic control risks lurking behind financial data [6].