Bei Jing Shang Bao·2025-07-28 03:02Core Viewpoint - Shanghai Electric is facing a significant financial crisis due to overdue accounts receivable from its subsidiary, Shanghai Electric Communication Technology Co., Ltd., which has led to a lawsuit to recover 4.127 billion yuan in overdue payments, potentially resulting in a loss of 8.3 billion yuan in net profit for the parent company [1][2][6]. Group 1: Financial Impact - The accounts receivable balance of the subsidiary is 8.672 billion yuan, with a significant portion overdue since April 2021, leading to a risk of substantial financial loss for Shanghai Electric [2][4]. - The company has provided a total of 7.766 billion yuan in shareholder loans to the subsidiary, which may also result in major impairment losses if the subsidiary fails to repay [6][4]. - In extreme scenarios, the total potential loss to Shanghai Electric's net profit could reach 8.3 billion yuan, combining losses from equity investments and shareholder loans [6][4]. Group 2: Legal and Regulatory Actions - Shanghai Electric has initiated legal proceedings against several parties to recover overdue accounts, with the case being accepted by the Shanghai courts [2][3]. - The Shanghai Stock Exchange has issued a regulatory letter to Shanghai Electric, urging the company to manage risk and comply with information disclosure obligations [3][1]. Group 3: Risks Faced by the Subsidiary - The subsidiary faces four major risks, including the inability to recover accounts receivable, which could lead to significant asset impairment [4][5]. - There is a risk that the subsidiary's inventory, valued at 2.23 billion yuan, may not be fully convertible into cash, leading to further asset impairment [4][5]. - The subsidiary has external bank loans totaling 1.252 billion yuan, with repayment risks due to overdue dates, which could exacerbate financial difficulties [4][5].