SDGI(SZ:000070) Nan Fang Du Shi Bao·2025-07-03 23:15Core Viewpoint - ST Te Xin (000070.SZ) has announced that it will apply to the Shenzhen Stock Exchange to revoke the "other risk warning" on its stock, as the factors leading to the warning have been eliminated and it has completed the necessary rectifications [2][4][6] Financial Performance - In 2024, the company reported revenue of 4.409 billion yuan, a year-on-year decrease of 10.69%, and a net loss attributable to shareholders of 403 million yuan, down 47.74% year-on-year [4] - The decline in profit is primarily due to underperformance in the market expansion of acquired subsidiaries and the smart city project, leading to impairment provisions for goodwill and related assets [4] - Despite the overall profit decline, the cable segment achieved revenue of 2.931 billion yuan, a year-on-year increase of 6.25%, indicating competitiveness and stability in this segment [4] - The integration segment reported revenue of 380 million yuan, a year-on-year increase of 19.61%, highlighting growth potential [4] Regulatory Issues - The company faced scrutiny due to financial fraud, with its subsidiary overstating profits by 149 million yuan over five years, leading to administrative penalties and a warning from the Shenzhen Stock Exchange [3][4] - Following the penalties, the company's stock was labeled "ST Te Xin," resulting in nine consecutive trading days of declines [3] Future Outlook - If the application to revoke the risk warning is successful, it will signify the completion of necessary rectifications and present new opportunities for the company [6] - The company is expected to face challenges in enhancing profitability and market image, necessitating transparent information disclosure and strong performance to rebuild its reputation [6] - The industry is becoming increasingly competitive, prompting the company to accelerate its transformation and optimize its business structure to improve profitability [6]