Core Viewpoint - Huangshi Group, known as the "first stock of buffalo milk," is under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws, following a contract dispute related to an unreported supplementary agreement [1][2]. Group 1: Regulatory Actions - On March 28, Huangshi Group received a notice from the CSRC regarding the initiation of a case due to alleged information disclosure violations [1]. - The company had previously received inquiries from the Shenzhen Stock Exchange regarding its 2023 annual report, specifically about the potential impacts of related litigation and the need for detailed analysis of joint liability scenarios [2]. - In December 2024, the Guangxi Securities Regulatory Bureau issued a warning letter to Huangshi Group, citing incomplete and untimely information disclosure related to the contract matters [2]. Group 2: Financial Performance - Huangshi Group's 2024 earnings forecast indicates a projected loss of between 620 million to 680 million yuan, a shift from profit to loss primarily due to provisions for litigation-related liabilities and credit impairment losses [2]. - The company reported a non-recurring gain of 210 million yuan in 2023 from the transfer of related company equity, which will not recur in 2024 [2]. Group 3: Business Strategy and Operations - The company is actively pursuing market strategy innovations, focusing on differentiated buffalo milk products and exploring various sales channels, including B2B tea drink channels and membership-based warehouse supermarkets [3]. - The dairy segment's net profit is expected to double, with a revenue growth of approximately 5% year-on-year, excluding the impact of transferring its Yunnan dairy subsidiary [3].