Red phase INC.(SZ:300427) Xin Lang Cai Jing·2025-10-20 03:27Core Viewpoint - The article discusses ongoing legal actions against Huayi Electric (600290) and Hongxiang Co., Ltd. (300427) due to false statements and financial misreporting, highlighting potential compensation claims for affected investors [1][3]. Summary by Sections Huayi Electric (600290) - Huayi Electric is facing a lawsuit for false statements leading to investor claims, with the case entering the loss assessment phase [1]. - The company was found to have inflated its 2017 revenue by 347.26 million yuan, overstated accounts receivable, and miscalculated bad debt provisions by 8.13 million yuan, resulting in an inflated profit of 66.99 million yuan [1]. - The inflated accounts receivable from 2017 persisted, leading to profit reductions in subsequent years: 9.60 million yuan in 2018, 37.29 million yuan in 2019, 55.01 million yuan in 2020, 46.01 million yuan in 2021, and 62.58 million yuan in 2022 [2]. Hongxiang Co., Ltd. (300427) - Hongxiang Co., Ltd. is also under scrutiny for false disclosures, with legal actions initiated for investor claims [3]. - The company reported inflated revenues and profits from 2017 to 2022, with specific figures including 104.89 million yuan in 2017, 255.59 million yuan in 2018, 227.07 million yuan in 2019, 304.97 million yuan in 2020, 108.80 million yuan in 2021, and adjustments in 2022 [3][4]. - The inflated figures represented significant percentages of the reported amounts, indicating severe misrepresentation of financial health [4].