Core Viewpoint - The company Knight Dairy Industry has been investigated by the China Securities Regulatory Commission (CSRC) for failing to timely disclose significant losses from futures trading, which constitutes a violation of information disclosure regulations [2][12]. Group 1: Investigation and Penalties - Knight Dairy received a notice of investigation from the CSRC on July 4, 2025, due to non-compliance with information disclosure obligations related to futures trading losses [4][10]. - The investigation revealed that the company incurred substantial losses from futures trading, with the highest cumulative loss reaching 41.12% of its audited net profit for 2023 [9][12]. - The CSRC has proposed penalties, including a warning and fines totaling 200 million yuan for the company, and individual fines for executives ranging from 20 million to 80 million yuan [12][13]. Group 2: Financial Performance and Market Impact - In 2024, Knight Dairy reported a revenue of 1.297 billion yuan, a year-on-year increase of 3.22%, but a net loss of 7.6951 million yuan, a decline of 108.20% compared to the previous year [16]. - The company's stock price fell by 3.76% to 11.78 yuan per share on July 4, 2025, resulting in a total market capitalization of 2.463 billion yuan [16].

Core Viewpoint - The article discusses the investigation of Qishi Dairy, the first listed dairy company on the Beijing Stock Exchange, by the China Securities Regulatory Commission (CSRC) due to failure to timely disclose significant losses from futures trading, which is considered a violation of information disclosure regulations [2][4][12]. Summary by Sections Investigation and Announcement - On July 4, 2025, Qishi Dairy announced that it and its executives received a notice of investigation from the CSRC for failing to disclose significant futures trading losses in a timely manner [2][4]. - The investigation is based on the provisions of the Securities Law and the Administrative Penalty Law of the People's Republic of China [4]. Financial Losses - In 2024, Qishi Dairy engaged in futures trading involving soybean meal, sugar, and urea, leading to substantial losses [8]. - As of January 17, 2024, the total losses from eight futures accounts reached 9.02 million yuan, accounting for 12.60% of the company's audited net profit for 2022 [8]. - The cumulative losses peaked at 17.51 million yuan by February 27, 2024, representing 24.45% of the 2022 net profit [8]. - By August 13, 2024, the total losses increased to 38.73 million yuan, which was 38.21% of the 2023 net profit, with a maximum loss of 41.12% by December 31, 2024 [9]. Accountability of Executives - The CSRC identified the company's chairman and general manager, Party Yongtao, and other executives as directly responsible for the failure to disclose the losses [12]. - Party Yongtao was aware of the significant losses but did not report them to the board promptly, while other executives also failed to ensure timely disclosure [12]. Penalties - The Inner Mongolia Securities Regulatory Bureau proposed penalties including a warning and fines: Qishi Dairy faces a fine of 2 million yuan, Party Yongtao 800,000 yuan, Wang Xilin 400,000 yuan, and Chen Yong 200,000 yuan [13]. - The final penalties will be confirmed in the administrative penalty decision issued by the Inner Mongolia Securities Regulatory Bureau [13]. Previous Issues - In April 2025, Qishi Dairy was criticized by the Beijing Stock Exchange for not correcting inaccurate earnings forecasts for 2024 in a timely manner [15]. - The company reported a revenue of 1.297 billion yuan in 2024, a year-on-year increase of 3.22%, but a net loss of 7.6951 million yuan, a decline of 108.20% [16]. Stock Performance - As of July 4, 2025, Qishi Dairy's stock price was 11.78 yuan per share, down 3.76% on that day, with a total market capitalization of 2.463 billion yuan [17].