GZBL(SZ:002424) Mei Ri Jing Ji Xin Wen·2025-06-19 15:11Core Viewpoint - ST Bailin (SZ002424) has applied to the Shenzhen Stock Exchange to lift its risk warning after rectifying internal control deficiencies identified in its 2023 audit report, which received a negative opinion from its accounting firm [1][2]. Group 1: Internal Control Issues - The negative opinion from the accounting firm was due to significant deficiencies in internal controls related to sales expenses, leading to failures in financial reporting [1][3]. - The Guizhou Securities Regulatory Bureau found two main issues: inaccurate accounting treatment of sales expenses and significant internal control deficiencies, resulting in the company’s financial data being untruthful for several years [4]. Group 2: Financial Performance and Adjustments - ST Bailin revised multiple data points in its 2023 annual report, and its sales expenses reached 2.311 billion yuan, an increase of 780 million yuan or 51% year-on-year [3]. - The company reported a net profit of 33.62 million yuan for the previous year, largely due to non-recurring gains, including government subsidies of 47.0556 million yuan [5]. Group 3: Ongoing Investigations and Future Outlook - The China Securities Regulatory Commission is still investigating ST Bailin for suspected information disclosure violations, with no conclusion reached as of May [5][6]. - The company’s first-quarter performance in 2024 showed a significant decline, with revenue down over 40% and net profit down over 50% year-on-year, indicating ongoing challenges in its financial health [6].