RECLAIM CONSTRUCTION(SZ:002586) Xin Lang Cai Jing·2025-12-20 03:37Core Viewpoint - *ST Weihai has finally responded to the Shenzhen Stock Exchange's inquiry regarding its 2023 annual report after nearly 20 months, marking a potential turning point for the company as it prepares to lift the delisting risk warning on its stock [1][7]. Group 1: Company Response and Financial Issues - The company received an inquiry letter from the Shenzhen Stock Exchange on May 5, 2024, regarding its 2023 annual report, which required explanations on audit opinions, accounting errors, and executive departures [2][8]. - On July 27, 2023, *ST Weihai received a notice of investigation from the China Securities Regulatory Commission (CSRC), which identified issues in its financial reporting, including improper accounting treatment that inflated profits in 2021 and reduced profits in 2022 [2][8]. - In January 2024, the company disclosed corrections to accounting errors affecting revenue and costs from 2018 to 2022, but stated that these corrections did not significantly alter the nature of its earnings or losses, except for the year 2021 [2][8]. Group 2: Audit and Compliance - The company's auditors confirmed that the previous accounting errors do not pose a significant risk of delisting, and the corrections made do not materially affect the 2023 financial statements [3][9]. - Following the resignation of the company’s secretary and financial director in April 2024, the company clarified that their departures were due to personal reasons and not related to disagreements over financial reporting [3][9]. Group 3: Stock Status and Financial Health - On December 19, 2024, it was announced that *ST Weihai's stock would be suspended for one day on December 22 and would resume trading on December 23, with the delisting risk warning being lifted and the stock name changing from "*ST Weihai" to "ST Weihai" [4][10]. - Despite the lifting of the delisting risk warning, the stock will continue to face other risk warnings due to previous financial misreporting, with plans to apply for the removal of these warnings after 12 months from the issuance of the administrative penalty decision [4][11]. - As of the end of 2024, *ST Weihai reported total assets of 75.76 billion, net assets of 29.43 billion, and a debt-to-asset ratio of 61.15%, with cash reserves of 13.01 billion and no overdue borrowings [5][11].