Core Viewpoint - Hengbang Co., Ltd. has faced regulatory scrutiny due to the resignation of two independent directors, leading to a failure to meet the required board composition, which has resulted in administrative corrective measures from the Shandong Securities Regulatory Bureau [1][4]. Regulatory Actions - On November 25, the Shandong Securities Regulatory Bureau issued a decision to Hengbang Co., Ltd. for failing to complete the election of new independent directors within the stipulated time frame after the resignation of two directors [1][4]. - The company has been previously penalized for various regulatory issues, including a significant safety incident that resulted in economic losses and fines for multiple executives [7][8]. Company Performance - Hengbang Co., Ltd. reported a revenue of 75.801 billion yuan for 2024, marking a year-on-year increase of 15.59%, with a net profit attributable to shareholders of 537 million yuan, up 4.07% [9]. - In the first three quarters of the current year, the company achieved a revenue of 76.444 billion yuan, reflecting a 31.44% increase year-on-year, while the net profit attributable to shareholders reached 562 million yuan, a 20.89% increase [9]. Profitability Concerns - Despite revenue growth, the company's gross profit margin has significantly declined from 18.43% in 2008 to 2.46% in 2024, primarily due to the low margin of externally sourced raw materials compared to self-mined materials [10]. - The company has acknowledged the need to enhance its gross profit margin and is focusing on optimizing its business structure to improve profitability [10].