Core Viewpoint - Qingyue Technology is facing an unprecedented crisis due to an investigation by the China Securities Regulatory Commission (CSRC) for suspected false financial reporting, leading to significant concerns about its financial health and future performance [1][16]. Financial Performance - Qingyue Technology reported a net profit of approximately -0.7 billion yuan for 2024, marking two consecutive years of losses [1]. - The company's 2023 annual report revealed a net profit of -1.18 billion yuan, a significant decline from a profit of 55.89 million yuan in the previous year [9]. - Revenue for 2023 was 6.61 billion yuan, a year-on-year decrease of 36.69%, with electronic paper module product revenue dropping by 34.47% [9][11]. Client Dependency and Risks - The company's largest client, Hanshuo Technology, accounted for over 99% of its electronic paper module business revenue, indicating a high dependency on a single customer [11]. - Hanshuo Technology began producing its own electronic paper modules in 2022, which has significantly reduced its procurement from Qingyue Technology [12][19]. - The strategic cooperation agreement between Qingyue Technology and Hanshuo Technology, which promised stable collaboration for 3-5 years, has been undermined by Hanshuo's self-sufficiency [6][7]. Regulatory Issues - Qingyue Technology received a notice from the CSRC regarding an investigation into potential false financial reporting, which could lead to severe penalties, including forced delisting [16][19]. - Prior to this, the company had already faced scrutiny from the Jiangsu Securities Regulatory Bureau for issues related to the use of raised funds and undisclosed related-party transactions [18]. IPO and Market Expectations - During its IPO, Qingyue Technology presented an overly optimistic view of its relationship with Hanshuo Technology, claiming a long-term stable partnership without acknowledging the risks posed by Hanshuo's self-built production lines [2][6]. - The initial projections of stable cooperation have proven to be inaccurate, as evidenced by the rapid decline in sales and profitability following the IPO [7][9].