Zhi Tong Cai Jing·2025-12-28 12:48Core Viewpoint - Dongjiang Environmental Protection (00895) has received a regulatory talk notice from the Shenzhen Securities Regulatory Bureau due to issues in financial accounting, internal controls, and corporate governance [1][2] Financial Accounting Issues - The company has been found to have irregularities in revenue recognition for certain projects, including precious metal recycling and landfill gas power generation, which do not comply with relevant accounting standards [1] - Specific issues include improper revenue recognition policies, insufficient basis for amortization periods of certain licenses, and non-compliance in capitalizing interest on loans related to heavy metal sludge [1] - There are also concerns regarding the internal controls related to revenue and inconsistencies in the recognition of goodwill-related asset groups compared to annual report disclosures [2] Corporate Governance Issues - The company's operations of the "three meetings" (shareholders' meeting, board of directors, and supervisory board) are not compliant with regulations, along with inadequate management of insider information registries [1] - These governance issues violate several provisions of the rules and guidelines set forth by the regulatory authorities [1] Regulatory Measures - The Shenzhen Securities Regulatory Bureau has mandated that the company's chairman, president, CFO, and board secretary attend a regulatory talk to address these issues [2] - The company has the right to appeal the regulatory measures within 60 days or file a lawsuit within six months, but the measures will remain in effect during this period [2] - The company emphasizes its commitment to improving governance and compliance to protect the interests of shareholders and ensure stable operations [2]