GKG(SZ:301338) Xin Lang Cai Jing·2025-11-13 04:00Core Viewpoint - The company, Kaige Precision Machinery, is facing challenges due to the potential legal issues involving its general manager, Deng Di, and regulatory scrutiny over improper use of IPO funds, despite reporting significant revenue and profit growth in recent quarters [2][3][4]. Group 1: Management Issues - The general manager, Deng Di, is under investigation for suspected dangerous driving, which may lead to penalties such as control or detention, although he is currently allowed to perform his duties [2] - Deng Di has been with the company since 2006 and was appointed general manager just one month prior to the announcement [2] - The company has expressed sincere apologies to investors regarding the negative impact of these events and plans to enhance legal awareness among its staff [2] Group 2: Regulatory Scrutiny - The company received a regulatory decision from the Guangdong Securities Regulatory Commission for improper use of IPO funds, leading to warning letters issued to the chairman and three other executives [3] - Specific violations included overpayment of salaries related to the "R&D and Testing Center Project" and misallocation of salaries for the "Precision Intelligent Manufacturing Equipment Production Base Construction Project," totaling approximately 32.14 million yuan [3] Group 3: Financial Performance - Kaige Precision Machinery reported a significant increase in financial performance for the first three quarters of 2025, with revenue reaching 775 million yuan, a year-on-year growth of 34.21% [4] - The net profit attributable to shareholders was 121 million yuan, reflecting a substantial year-on-year increase of 175.35% [4] - In the third quarter alone, the company achieved revenue of 321 million yuan, a 47.40% increase compared to the same period last year, and a net profit of approximately 54.11 million yuan, marking a 227.15% year-on-year growth [4]