HULUWA(SH:605199) Shang Hai Zheng Quan Bao·2026-02-27 20:49Core Viewpoint - The company, Hainan Huluwa Pharmaceutical Group Co., Ltd., is facing a risk warning on its stock due to a negative internal control audit report for the fiscal year 2024, effective from April 30, 2025 [2][3]. Group 1: Risk Warning Implementation - The company's stock will be subject to a risk warning as per the Shanghai Stock Exchange rules due to the negative opinion in the internal control audit report [2][3]. - The company is required to disclose progress on the risk warning at least once a month during the warning period [2]. Group 2: Measures Taken Post Risk Warning - A special rectification team led by the chairman has been established to address issues highlighted in the internal control audit report, focusing on areas such as research and development process management and financial management [4]. - The company is conducting internal checks on its management systems and has implemented stricter contract signing processes, requiring multi-department evaluations for new contracts [4]. - Financial processes are being thoroughly reviewed to ensure compliance with accounting standards, including the introduction of a dedicated review process for financial data [5]. - The company is enhancing its internal control operations by revising internal control systems and conducting special checks to ensure effective execution [5]. - Company executives are participating in training organized by regulatory bodies to improve their understanding of securities laws and regulations [6]. - The company is cooperating with the China Securities Regulatory Commission regarding an investigation into alleged information disclosure violations [6]. - Communication with professional accounting firms is ongoing to improve governance and ensure smooth auditing processes for the fiscal year 2025 [6]. - The company is focusing on compliance management and enhancing communication with regulatory authorities to strengthen its risk prevention framework [6].