Core Viewpoint - ST Huizhou (002122.SZ) is under investigation for suspected revenue inflation, with findings indicating that its subsidiaries fabricated business activities, leading to false financial disclosures for 2019 and 2020 [2][3]. Revenue and Profit Adjustments - The two subsidiaries of ST Huizhou inflated revenue by a total of 5990.19 million yuan in 2019 and 9688.56 million yuan in 2020, representing 5.08% and 13.42% of the reported amounts for those years, respectively [3][4]. - The inflated profits amounted to 1415.84 million yuan in 2019 and 1777.05 million yuan in 2020, accounting for 0.88% and 8.72% of the reported profit totals for those years [3][4]. Financial Statement Corrections - In April, ST Huizhou acknowledged accounting errors and corrected its financial statements for 2019 and 2020, adjusting the revenue and net profit figures downward [3][4]. - The adjustments resulted in a reduction of 5990.19 million yuan in revenue and 1064.96 million yuan in net profit for 2019, and a reduction of 9688.56 million yuan in revenue and 1184.70 million yuan in net profit for 2020 [4]. Regulatory Actions - The regulatory body issued a warning and proposed a fine of 5 million yuan against ST Huizhou, along with penalties for responsible individuals [5]. - The company’s stock has been placed under additional risk warnings due to the identified false disclosures [5]. Operational Status - Despite the investigation and penalties, ST Huizhou reported that its operations remain normal and it aims to strengthen internal governance and compliance awareness among its management [6]. Recent Financial Performance - In the third quarter of 2025, ST Huizhou achieved revenue of 261 million yuan, a year-on-year increase of 11.27%, but experienced a quarter-on-quarter decline of 9.74% [7]. - For the first three quarters of 2025, the company reported revenue of 809 million yuan, a 16.57% increase year-on-year, but a decline in net profit of 18.12% [7].