Hoshine Silicon(SH:603260) Xin Lang Cai Jing·2026-01-23 10:03Core Viewpoint - Hosheng Silicon Industry's investment of over 10 billion yuan has been concealed, potentially exposing governance issues within the company. The company recently received a regulatory letter and is now facing a share reduction plan from its controlling shareholder. Notably, the company has over 35 billion yuan in construction projects on its books, with significant discrepancies between actual investment and budgeted amounts, as well as slow project progress and no impairment recorded [1][2][4][5]. Group 1: Regulatory Issues - Hosheng Silicon Industry received two decision letters from the Zhejiang Securities Regulatory Bureau on January 16, indicating violations of information disclosure regulations. One letter mandated corrective measures for the company, while the other issued warnings to four key executives [2][5]. - The company failed to disclose over 1.6 billion yuan in related party transactions, which were not subjected to the required review procedures. These transactions included approximately 772 million yuan with Kaifa Joint Trading Co. and 2.45 billion yuan with Kuqa Juyou Coal Industry Co. from 2022 to 2024 [3][17]. Group 2: Investment Concealment - In October 2022, Hosheng Silicon's subsidiary signed a strategic cooperation framework agreement with the government of Hangzhou Xiaoshan District, with an initial investment of about 7 billion yuan, later increased to approximately 11 billion yuan in June 2023. These amounts represent 34.55% and 45.88% of the company's latest audited net assets, respectively [4][17]. - The company did not fulfill the necessary review and disclosure obligations regarding this substantial investment [4][18]. Group 3: Financial Performance - Hosheng Silicon reported a loss in the third quarter of 2025, with total revenue of 15.206 billion yuan, a year-on-year decrease of 25.35%. The net profit attributable to shareholders was -321 million yuan, a decline of 122.1% [19]. - The company indicated that the losses were primarily due to falling sales prices of industrial silicon, operational losses in the photovoltaic sector, and provisions for inventory depreciation [19]. Group 4: Construction Projects - The company has over 35 billion yuan in construction projects, with significant characteristics: first, the actual investment has exceeded budgeted amounts, and second, the progress of related projects appears to be slow. For instance, the coal-electricity-silicon integration project has seen cumulative investments surpassing 120% of its budgeted amount [8][10][24]. - Despite the slow progress of these projects, the company has not recorded any impairment on these assets [13][25].