KNT(SZ:300225) Mei Ri Jing Ji Xin Wen·2025-07-02 07:16Core Viewpoint - Jinlitai, a leading industrial coatings company, reported a slight decrease in revenue for 2024 but a significant increase in net profit, while facing serious audit issues that led to its stock being marked with a warning sign [1][2]. Financial Performance - In 2024, Jinlitai achieved revenue of 732 million yuan, a year-on-year decrease of 0.44% [1]. - The net profit attributable to shareholders was approximately 30.91 million yuan, reflecting a year-on-year increase of 115.66% [1]. - For the first quarter of 2025, the company reported revenue of about 165 million yuan, an increase of 4.51% year-on-year, and a net profit of approximately 5.63 million yuan, up 113.82% year-on-year [1]. Audit Issues - The 2024 financial statements received an "unable to express an opinion" audit report due to significant issues, including abnormal large fund transactions and the inability to assess the commercial substance of related equity transactions [1][4]. - Jinlitai's stock will be renamed to *ST Jinlitai following the audit findings [1]. Fund Transactions - In 2024, Jinlitai transferred a total of 931 million yuan to related trading companies and received back 930 million yuan, with a remaining balance of 17.87 million yuan at the end of the year [2]. - The audit revealed that funds transferred to these trading companies were subsequently moved to non-supplier entities, raising concerns about potential fund occupation channels [4][8]. Equity Transactions - Jinlitai's acquisition of Shenzhen Yitai Technology Co., Ltd. involved complex fund flows, including a repayment of 137.53 million yuan that was traced back through multiple entities, complicating the audit process [6][7]. - The audit firm could not ascertain the true nature of the funds involved in the equity transactions, indicating a significant risk of non-operating fund occupation [8]. Company Response - Jinlitai's board acknowledged the audit findings and expressed a commitment to addressing the identified risks to protect the interests of the company and its shareholders [8].