Zhejiang Power New Energy (SH:688184) Zhong Guo Jing Ying Bao·2025-08-05 13:44Core Viewpoint - ST Pava is facing significant operational and financial challenges due to allegations of fund misappropriation by its actual controller and chairman, Zhang Bao, leading to investigations and a decline in financial performance [2][3][4]. Group 1: Allegations and Investigations - On August 1, 2025, ST Pava received a notice from law enforcement regarding the investigation of Zhang Bao for suspected embezzlement [2]. - Zhang Bao previously disclosed the misappropriation of company funds amounting to 191 million yuan, with a total of 204 million yuan including interest calculated at the LPR rate [3]. - The company has acknowledged significant internal control deficiencies that contributed to these issues and has classified the misappropriated funds as other receivables [3][5]. Group 2: Financial Performance - ST Pava experienced rapid growth from 2020 to 2022, with a revenue of 1.656 billion yuan in 2022, representing a 91.21% year-on-year increase, and a net profit of 146 million yuan, up 74.52% [6]. - However, in 2023, the company reported a revenue drop to 1.284 billion yuan and a net profit of 19.12 million yuan, which later adjusted to a net loss of 97.37 million yuan in the annual report [7]. - The company continued to face losses in 2024, with a net loss of 732 million yuan, attributed to market competition and supply-demand imbalances [7][8]. Group 3: Operational Measures - In response to its financial difficulties, ST Pava has proposed measures such as shutting down inefficient production lines, reducing management costs, and optimizing existing assets, with a focus on achieving profitability in 2025 [8].