Realcan(SZ:002589) Shen Zhen Shang Bao·2025-12-25 15:28Core Viewpoint - Ruikang Pharmaceutical has terminated its cooperation with Zhongxing Caiguanghua Accounting Firm and appointed Shenzhen Jiuan to undertake the 2025 audit, raising concerns about potential audit risks and independence issues [3][4]. Group 1: Company Actions - The company announced the change in auditors on December 24, citing "comprehensive consideration of business development and audit needs" without providing further details [3]. - The decision to change auditors comes just before the annual audit process, which typically starts in January and concludes by the end of April [3]. Group 2: Regulatory Issues - Ruikang Pharmaceutical has faced multiple regulatory warnings over the past five years, including a warning from the Shandong Securities Regulatory Bureau in December 2023 for serious violations [3]. - Specific violations include failing to disclose a 4.6 billion yuan related party transaction and not timely reporting litigation matters totaling 5.84 billion yuan [3]. Group 3: Management Turmoil - In July 2023, the company experienced significant management changes, including the detention of a board member and the resignation of the actual controller's son [4]. - These management upheavals coincide with a decline in the company's operational performance [4]. Group 4: Financial Performance - Revenue for Ruikang Pharmaceutical has seen significant declines from 2020 to 2024, with year-on-year decreases of 22.84%, 22.67%, 41.54%, 34.74%, and a slight drop of 0.85% in 2025 [4]. - The net profit for the company has also deteriorated, with a 63% year-on-year decline in the first three quarters of 2025 [4]. Group 5: Industry Context - Ruikang Pharmaceutical is not alone in terminating its relationship with Zhongxing Caiguanghua; at least 30 other A-share companies have also ended their partnerships with the firm amid concerns over its audit practices [5][6]. - The wave of terminations is linked to Zhongxing Caiguanghua's involvement in a financial fraud case, which has led to regulatory scrutiny and investigations [6].