Kehua Holdings(SH:603161) Zheng Quan Zhi Xing·2025-08-22 15:16Summary of Key Points Core Viewpoint - The company has maintained compliance with regulatory requirements and has not faced any penalties from securities regulators in the last five years, although it has received warnings and criticisms regarding its financial disclosures and governance practices [1][2][5]. Regulatory Actions - The company has not been penalized by securities regulators in the last five years [1]. - In June 2022, the company received a warning letter from the Jiangsu Regulatory Bureau of the China Securities Regulatory Commission (CSRC) due to discrepancies in its financial disclosures [2][5]. - In August 2022, the Shanghai Stock Exchange issued a public criticism against the company and its responsible individuals for failing to provide accurate financial forecasts [2][5]. - In December 2023, the company received another warning letter from the Jiangsu Regulatory Bureau for inaccurate disclosures related to its accounting firm [5][6]. Financial Performance Discrepancies - The company initially forecasted a net profit of between 2.86 million and 4.29 million yuan for 2021, but later revised this to a loss of between 56.11 million and 37.41 million yuan [2][3]. - The final audited net profit for 2021 was reported as a loss of 46.76 million yuan, indicating a significant deviation from the initial forecasts [3][4]. - The discrepancies were attributed to rising prices of raw materials, increased freight costs, and delayed adjustments in customer sales prices [3][4]. Governance and Compliance - The company has emphasized its commitment to improving governance structures and internal controls to enhance compliance with regulations [1][6]. - The company has acknowledged the need for better adherence to the information disclosure management regulations and has committed to improving the quality of its disclosures [6].