Zheng Quan Zhi Xing·2025-08-12 16:14Core Viewpoint - The announcement from Dongfang Jincheng International Credit Rating Co., Ltd. highlights that China Shipbuilding Industry Corporation Emergency Warning and Rescue Equipment Co., Ltd. (referred to as "China Ship Emergency") has been placed under other risk warnings due to accounting errors in its 2022 financial statements, which led to overstatements in revenue and profit [1][2][3]. Summary by Sections Company Credit Rating - Dongfang Jincheng maintains the credit rating of China Ship Emergency and its "Emergency Convertible Bonds" at AA+ with a stable outlook as of June 17, 2025 [1]. Financial Reporting Issues - The 2022 annual report of China Ship Emergency revealed accounting errors, including premature revenue recognition of 31.3724 million yuan, leading to an overstatement of total revenue by 1.86% and total profit by 36.64% [2]. - Additionally, there was an incorrect classification of bad debt provisions, resulting in an overstatement of bad debt reserves by 5.8412 million yuan [2]. Risk Warning Implementation - As per the Shenzhen Stock Exchange rules, China Ship Emergency's stock has been placed under other risk warnings, changing its trading name to "ST Emergency" while the stock code remains 300527 [3]. - The stock will be suspended from trading starting July 31, 2025, but the daily price fluctuation limit remains at 20% [3]. Remedial Actions - China Ship Emergency has corrected the accounting errors and made retrospective adjustments as of January 16, 2024 [4]. - The company plans to apply for the removal of the risk warning after 12 months from the issuance of the administrative penalty decision by the China Securities Regulatory Commission [4][5]. Ongoing Monitoring - Dongfang Jincheng will continue to monitor the developments regarding China Ship Emergency's operational and financial status and disclose any potential impacts on its credit ratings [5].