Baiyin Nonferrous(SH:601212) IPO日报·2025-09-12 09:03Core Viewpoint - The announcement of an investigation by the China Securities Regulatory Commission (CSRC) into Baiyin Nonferrous Group Co., Ltd. has revealed significant internal control issues within the company, leading to a sharp decline in its stock price and market value [1][5]. Group 1: Investigation and Internal Control Issues - Baiyin Nonferrous received a formal investigation notice from the CSRC for suspected violations of information disclosure laws, resulting in a single-day market value loss of approximately 3 billion yuan [1]. - Prior to the investigation, the company's stock had experienced a two-day limit-up surge, with a statement claiming no undisclosed significant information [2]. - The investigation appears to be triggered by two undisclosed criminal cases involving the company, including the theft of 990 tons of zinc ingots and the embezzlement of 157 million yuan worth of copper products [5]. Group 2: Financial Impact and Performance - The company faced a forced provision of approximately 317 million yuan due to a contract dispute involving a subsidiary, leading to a significant loss of 217 million yuan in the first half of 2025, a staggering year-on-year decline of 1859.82% [6]. - In November 2023, a discrepancy of 388 million yuan was discovered between the shipment volume of zinc ingots and actual payments, highlighting severe management flaws in trade operations [7]. - Baiyin Nonferrous has struggled with profitability despite revenue growth, with net profits fluctuating around 30 million yuan from 2018 to 2022, and a drop to 80.79 million yuan in 2024 after a brief increase in 2023 [11]. Group 3: Company Background and Operations - Established in 1954, Baiyin Nonferrous is a long-standing state-owned enterprise in China's nonferrous metal industry, known for its historical production records [8]. - The company operates across various metals, including copper, lead, zinc, gold, and silver, with a production capacity of 10 million tons of mined ore and 600,000 tons of smelting capacity in 2023 [9]. - Despite being a prominent player in the industry, Baiyin Nonferrous's profitability has not been particularly strong, with significant challenges in converting scale expansion into improved financial performance [10].