Rebecca(SH:600439) Xin Hua Wang·2025-08-12 05:37Core Viewpoint - The company Henan Ruibeka Hair Products Co., Ltd. is under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure, leading to a significant drop in stock price and market confidence [1][2]. Group 1: Regulatory Issues - The CSRC's investigation is triggered by long-standing deficiencies in the company's information disclosure, particularly regarding financial transactions and related party disclosures [2]. - In the past eight months, the company has received three regulatory warnings, indicating a pattern of non-compliance [2]. - The CSRC identified five major issues in the company's disclosures, including undisclosed non-operating fund transactions with related parties and inadequate provisions for inventory depreciation [2][6]. Group 2: Financial Performance - For the fiscal year 2024, the company reported a net loss of 118 million yuan, marking its first annual loss since its listing in 2003 [4]. - Revenue figures for the years 2022 to 2024 show a declining trend, with revenues of 1.258 billion yuan, 1.226 billion yuan, and 1.239 billion yuan, reflecting year-on-year declines of -19.65%, -2.57%, and a slight increase of 1.10% respectively [4]. - The company's sales expenses surged by 62% to 226 million yuan, primarily due to increased marketing efforts for online channels, contributing to the net loss [4]. Group 3: Inventory and Cash Flow Concerns - The company reported a significant inventory balance of 3.182 billion yuan at the end of 2024, with 1.84 billion yuan in finished goods, which could cover sales for up to one and a half years [5]. - The company only recognized 26.27 million yuan in inventory depreciation, raising concerns about the authenticity and value of its inventory [5]. Group 4: Governance and Financial Health - The investigation highlights systemic issues in the company's governance, particularly regarding undisclosed non-operating fund transactions totaling 2.3 billion yuan with related parties [6]. - As of April 11, 2025, the controlling shareholder had pledged 69.98% of its shares, indicating potential liquidity issues [7]. - The combination of undisclosed related party transactions, high inventory depreciation risks, and significant share pledges presents a multi-faceted crisis for the company [7].