Core Points - *ST Hengli has filed a lawsuit against Shenzhen Xutai Accounting Firm for over 38 million yuan in damages due to the firm's failure to conduct the audit in a timely manner, which resulted in the company being unable to disclose its annual report on time [1][4] - The company has faced regulatory scrutiny and has received a notice of termination of listing from the Shenzhen Stock Exchange due to the delay in disclosing its annual report [5] Group 1: Legal Action - The lawsuit was initiated after *ST Hengli received a court notice acknowledging the case against Xutai Accounting Firm and its partners for infringement [1] - The company claims that the accounting firm did not follow the agreed timeline and procedures for the audit, leading to significant financial losses [1][4] - *ST Hengli alleges that the accounting firm exhibited negligence and unprofessional conduct, including the use of unqualified personnel for the audit [3] Group 2: Financial Impact - The delay in the annual report has resulted in a market value loss exceeding 38 million yuan as of April 30, 2025 [1][4] - The company reported a revenue of 70.06 million yuan for the first three quarters of 2024, marking an 18.31% year-on-year increase, but also a significant net loss of 16.21 million yuan [6] - The company anticipates a potential financial delisting scenario if the final annual report shows revenue below 300 million yuan [6] Group 3: Management Changes - Two senior executives have resigned from their positions, citing personal reasons, amidst the ongoing issues with the audit and financial reporting [6] - The company’s main business operations are divided among three subsidiaries, focusing on automotive parts, investment, and trade [6]

Core Viewpoint - The company *ST Hengli (000622.SZ)* is facing delisting risks due to the failure to disclose its 2024 annual report on time, stemming from disputes with its auditing firm, Shenzhen Xutai Accounting Firm [1][5]. Group 1: Dispute with Auditing Firm - The conflict between Hengli and Xutai began when Hengli appointed Xutai as its auditor for the 2024 annual report due to the original firm being unable to take on more work [2]. - Hengli claims that it fully cooperated with Xutai and paid all fees, but the auditing firm failed to deliver the audit report on time as per the agreed schedule [2]. - The company alleges that Xutai's actions, including inadequate staffing and poor communication, hindered the audit process and violated its legal rights [2][3]. Group 2: Financial Performance and Delisting Risk - In the first three quarters of 2024, Hengli reported revenue of 70.06 million, an increase of 18.31% year-on-year, but incurred a net loss of 16.21 million, significantly widening compared to the previous year [4]. - Due to a negative net profit for the audited 2023 fiscal year and revenue below 100 million, Hengli's stock was placed under delisting risk warning starting May 6, 2024 [5]. - Following the failure to disclose the 2024 annual report, the company received a notice of potential delisting from the Shenzhen Stock Exchange [5].