HXDF(SZ:300081) Di Yi Cai Jing Zi Xun·2025-08-13 14:15Core Viewpoint - Hengxin Dongfang is under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure, following the discovery of accounting errors in its 2022 annual report, which resulted in a revenue reduction of over 180 million yuan [1][2]. Financial Performance - The company has reported cumulative net losses exceeding 2 billion yuan over the past five years, with a loss of over 34 million yuan in the first quarter of this year [1][5]. - In 2022, the company initially reported a revenue of 489 million yuan, which was later adjusted down to 308 million yuan, reflecting a year-on-year decrease of 36.8% [2][5]. - The net profit and net profit excluding non-recurring items for 2022 were losses of 421 million yuan and 397 million yuan, respectively, marking increases of 18.06% and 26.82% year-on-year [2]. Business Operations - The company’s new business, computing power system integration, was initially expected to be a significant revenue source but has since seen its revenue contribution drop to less than 5% of total revenue in recent years [3][4]. - The revenue from computing power system integration was adjusted from 217 million yuan to 35.65 million yuan, a decline of over 80%, and its share of total revenue fell from 44.41% to 11.59% [2][3]. Investment Projects - Hengxin Dongfang has faced challenges with its fundraising projects, frequently postponing or terminating them, leading to a cumulative loss of approximately 2.075 billion yuan from 2021 to 2024 [5][6]. - The company has altered the allocation of raised funds multiple times, including a significant reduction in investment for the VR venue operation center from 350 million yuan to 19.85 million yuan [6][7]. - The company has also been using idle raised funds for cash management, with plans to use up to 130 million yuan for this purpose in 2023 [7].