Core Points - The company Zhanzi Island announced that its subsidiary Qingdao Frontier Marine Seed Industry Co., Ltd. is required to pay back taxes and penalties totaling 21.54 million yuan, which is expected to directly reduce the net profit attributable to the parent company by 12.49 million yuan in 2025 [1][2] Group 1: Tax Issues - Qingdao Frontier Marine received multiple tax notices from the tax authority, indicating that its cooperative seedling business from 2019 to 2021 did not comply with tax regulations, necessitating a corporate income tax repayment of 10.6351 million yuan and late fees of 872,310 yuan [2] - The company has already paid the corporate income tax for 2022 amounting to 1.5573 million yuan and late fees of 627,500 yuan as required by the tax authority [2] - All tax payments and penalties have been settled as of the announcement date, and the tax repayment will be fully accounted for in the 2025 financial results without retrospective adjustments to previous financial statements [2] Group 2: Financial Performance - Zhanzi Island reported a loss of 22 million yuan for 2024, while its revenue for the first half of the year was 772 million yuan, a year-on-year decrease of 0.77% [3] - The net profit attributable to the parent company for the same period was 10.1491 million yuan, reflecting a year-on-year increase of 146.39% [3] Group 3: Stock Market Reaction - On October 16, the company's stock opened down by 1.8%, fluctuated throughout the day, and ultimately closed down by 0.6% at 3.97 yuan per share, with a total market capitalization of approximately 3.8 billion yuan [4]