FUDAN FORWARD(SH:600624) Zheng Quan Shi Bao Wang·2025-12-26 13:18Core Viewpoint - ST Fuhua has been penalized by the China Securities Regulatory Commission for false disclosures in its financial reports for the years 2019, 2020, and 2023, resulting in fines for both the company and its chairman [1][2]. Financial Misstatements - In 2019, ST Fuhua's subsidiary reported a failure to accurately account for construction costs, leading to an understatement of operating costs by 50.65 million yuan, which inflated the total profit by the same amount, representing 60.25% of the disclosed profit for that year [1]. - In 2020, the company again understated operating costs by 2.59 million yuan, inflating total profit by the same amount, which accounted for 7.11% of the disclosed profit [1]. - In 2023, the company improperly combined asset groups for inventory impairment testing, resulting in an understatement of asset impairment losses by 27.82 million yuan, inflating total profit by 118.48% of the disclosed profit for that year [2]. Regulatory Actions - The chairman, Song Zheng, was penalized for failing to ensure the accuracy of the inventory impairment testing despite being aware of the impairment signs, leading to his direct responsibility for the false disclosures in the 2023 annual report [2]. - ST Fuhua has taken corrective actions regarding the accounting errors, including adjustments to financial statements for 2018, 2019, and 2020, which resulted in a reversal of profit to a loss for 2019 [3]. Company Status - The company has stated that the recent administrative penalty does not trigger any mandatory delisting conditions as per the Shanghai Stock Exchange rules [3]. - As of the announcement date, ST Fuhua's business operations are reported to be normal and orderly [3].