CHINA HARZONE(SZ:300527) 中国基金报·2025-09-17 04:36Core Viewpoint - ST Emergency faced significant penalties due to major accounting errors in its 2022 annual report, resulting in a total fine of 5.9 million yuan for the company and its executives [2][3]. Accounting Errors - The 2022 annual report revealed inaccuracies in revenue recognition and bad debt provisions, leading to an overstatement of revenue by 31.37 million yuan, an overstatement of costs by 18.39 million yuan, and an overall profit overstatement of 12.98 million yuan [6]. - Additionally, incorrect classification and methods for bad debt provisions resulted in an excess provision of 5.84 million yuan, reducing the profit total by the same amount [6]. - The combined effect of these errors resulted in a 1.86% overstatement of total revenue and a 1.4% overstatement of total costs for the year [6]. Penalties Imposed - The Hubei Regulatory Bureau issued warnings and fines: ST Emergency received a 4 million yuan fine, while the former chairman, Tang Yong, was fined 700,000 yuan, the former general manager, Wang Xiaofeng, was fined 600,000 yuan, and the former chief accountant, Li Yingchang, was also fined 600,000 yuan [8]. Financial Performance - In the first half of 2025, ST Emergency reported a revenue of 403 million yuan, a decrease of 2.61% year-on-year, while the net profit attributable to shareholders was 5.16 million yuan, reflecting a significant increase of 504.17% [10]. - The company’s total revenue for the first half of 2025 was significantly lower than previous years, with a total revenue of 1.16 billion yuan in 2024 and 603 million yuan in 2023 [11]. Stock Market Reaction - Following the announcement of the penalties, ST Emergency's stock price initially rose but later experienced fluctuations, closing at 8.67 yuan per share, with a total market capitalization of 8.8 billion yuan [11].