Core Viewpoint - The long and tumultuous capital journey of *ST Hengli, a veteran listed company, is set to conclude in June 2025, as it faces delisting after failing to disclose a majority of its board's assurance on the authenticity of its 2024 annual report within the legal timeframe [1] Group 1: Company History - *ST Hengli was listed on the Shenzhen Stock Exchange in 1996, initially focusing on manufacturing automotive air conditioning equipment [3] - The company was first subjected to ST status in 2005 due to poor performance [4] - From 2006 to 2013, *ST Hengli faced a seven-year suspension from trading, during which it attempted various self-rescue operations, including asset sales and debt restructuring, to avoid delisting [5] - After regaining its listing, *ST Hengli quickly returned to losses, reporting net losses of 37 million yuan and 47 million yuan in 2014 and 2015, respectively [5][6] - In 2021, the company reported a profit of 171,960 yuan, but it suffered losses exceeding 10 million yuan in both 2022 and 2023, with revenue declining from 346 million yuan in 2021 to 111 million yuan in 2023 [7] Group 2: Efforts to Avoid Delisting - In August 2024, *ST Hengli announced that Xiangcheng Shenzhou acquired 76 million shares, becoming the largest shareholder, with plans to pivot towards lithium carbonate processing [8][9] - Following the acquisition, *ST Hengli projected a revenue increase to between 300 million and 350 million yuan for 2024, with over 200 million yuan expected from the newly acquired assets in Q4 [10] Group 3: Audit Controversy - The company's efforts to avoid delisting faced significant challenges when its auditor, Shenzhen Xutai Accounting Firm, raised serious doubts about its revenue figures, suggesting a reduction to 196 million yuan [11][12] - *ST Hengli disagreed with the auditor's assessment, leading to a major dispute over revenue recognition methods [14] - The company opted to sue the auditor for alleged obstruction during the audit process, seeking 38.27 million yuan in damages [16][17] Group 4: Final Penalties - Despite the lawsuit, *ST Hengli's delisting fate remained unchanged, as it received a warning and a fine of 3.5 million yuan from the Hunan Securities Regulatory Bureau [18] - Key executives, including the chairman and financial director, were also penalized with fines totaling 1.8 million yuan for their roles in the situation [19] - As of June 25, *ST Hengli entered a 15-day delisting preparation period, with the final trading day expected to be July 15, 2025, marking the end of its 29-year journey in the capital market [19]

Core Viewpoint - Shanghai Chuangxing Resource Development Co., Ltd. has faced significant challenges in its construction decoration business, with a reported revenue decline of 46.97% in 2024, primarily due to reliance on related party transactions and issues with accounts receivable from these clients [1][3][10]. Group 1: Construction Decoration Business - The company's construction decoration business generated revenue of 64.59 million yuan in 2024, accounting for 77% of total revenue, with a notable year-on-year decline [1][3]. - Accounts receivable from related parties, including Yunnan Longjie Tourism Development Co., Ltd. and Shanghai Zhenlong Real Estate Development Co., Ltd., amounted to 164 million yuan and 137 million yuan respectively, with significant provisions for bad debts [1][3][6]. - The company has reported ongoing litigation involving some related party clients, raising concerns about their creditworthiness and the recoverability of receivables [1][3][5]. Group 2: Accounts Receivable and Bad Debt Provisions - The company has made provisions for bad debts totaling 70 million yuan and 61 million yuan for the respective related parties, indicating a cautious approach to credit risk management [1][3][6]. - Cash flow issues have been reported for major clients, with Shanghai Zhenlong's revenue at 26.5 million yuan for 2024 and Yunnan Longjie facing tight cash flow due to long-term project investments [4][5][9]. - The company has actively communicated with clients regarding payment schedules, recovering approximately 22 million yuan in the first quarter of 2025 and 11 million yuan in the second quarter [6][9]. Group 3: Mobile Information Services Business - The mobile information services business achieved revenue of 19.42 million yuan in 2024, a significant increase from 8.52 million yuan in 2023, indicating growth in this segment [13][19]. - The company utilizes a net revenue recognition method for this business, with a focus on providing various SMS application services [13][14]. - There are concerns regarding overdue receivables from clients, particularly Guangzhou Green Collar Cultural Communication Co., Ltd., which has delayed payments due to cash flow issues [14][15]. Group 4: Other Equity Investments - The company holds a 20% stake in Shanghai Zhenlong Real Estate Development Co., Ltd., with an investment value of 173 million yuan, but has not recognized any dividend income due to the company's negative retained earnings [19][21]. - The lack of dividend distribution is attributed to Shanghai Zhenlong's negative retained earnings of 494 million yuan, which does not meet the conditions for profit distribution [21][22]. - The company employs valuation techniques to assess the fair value of its equity investments, using the asset-based approach due to the absence of an active market for these investments [22][29]. Group 5: Performance Compensation - The company has not met performance commitments related to its construction decoration business, with a revenue target of 100 million yuan and a net profit target of zero for the years 2022 to 2024 [33][34]. - The third phase of the equity transfer payment from the buyer remains unpaid, raising concerns about the buyer's financial stability and ability to fulfill payment obligations [34][35]. - Ongoing discussions are in place to address the performance compensation and ensure the protection of the company's and minority shareholders' interests [35].