MENDALE(SZ:002397) Cai Jing Wang·2025-08-27 14:44Core Viewpoint - The board member Chen Jie raised concerns regarding the authenticity, accuracy, and completeness of the company's 2025 semi-annual report, highlighting discrepancies between different versions of the report and questioning the company's governance structure [1][5]. Financial Performance - For the first half of 2025, the company's revenue decreased by 14.83% (1.28 billion) compared to the same period last year, while net profit increased by 26.27% (0.05 billion) [6][7]. - Sales expenses saw a significant reduction of 25.45% (0.59 billion), but the company failed to explain the rationale behind this decrease [7][8]. Governance Issues - Chen Jie pointed out that the company has previously made changes to reports without full board consent, indicating a lack of proper governance [1][5]. - The governance structure has not been adjusted as per the agreements made during the share transfer, which raises concerns about compliance [6][7]. Inventory and Prepayments - As of June 30, 2025, prepayments amounted to 32.05 million, a significant increase of 135.12% from the end of 2024 (18.54 million), with the company attributing this to raw material stocking without providing detailed supplier information [3][6]. - Although total inventory decreased, the inventory turnover days increased, indicating potential inefficiencies in inventory management compared to industry peers [8][9]. Related Party Transactions - The company provided illegal financial assistance of 66.03 million to a related party, which has not been effectively pursued for repayment, raising concerns about potential misappropriation of funds [10][12]. - The company has initiated legal proceedings to recover the funds owed by the related party, but the effectiveness of these actions remains in question [12][13].