CENTURY(SZ:300078) Xin Lang Zheng Quan·2025-08-22 08:41Core Insights - The stock price of Sichuang Medical has plummeted due to a criminal investigation initiated by the Hangzhou Public Security Bureau regarding fraudulent securities issuance, marking another significant crisis for the company after a hefty fine of 85.7 million yuan imposed by the Zhejiang Securities Regulatory Bureau last year [1][2]. Financial Fraud - Regulatory investigations have uncovered a chain of fraud involving Sichuang Medical, where in 2020, the company inflated profits by 83.94 million yuan, accounting for 67% of the total profit for that period, through its wholly-owned subsidiary, Yihui Technology [2]. Business Impact - The repercussions of the fraud have severely affected the core business of Yihui Technology, which has faced repeated failures in public hospital tenders due to reputational damage. The company's revenue is projected to drop to 169 million yuan in 2024, with a net loss of 320 million yuan, representing a nearly 60% decline from 417 million yuan in 2022 [3]. Strategic Restructuring - On May 30, Sichuang Medical announced the sale of Yihui Technology to a state-owned enterprise for nearly 300 million yuan, marking a complete exit from the smart healthcare sector. The company stated that the divestiture was necessary to concentrate resources on developing business intelligence [4]. Transition Challenges - Following the focus shift to business intelligence, Sichuang Medical aims to leverage its leading global EAS hard tag production capacity and RFID technology. However, the business intelligence segment is expected to see a revenue decline of 15% in 2024, with a gross margin drop of 4.83 percentage points to 21.54%. Despite an increase in revenue share to 72.5%, growth momentum remains insufficient [5].