Core Viewpoint - JuShi Chemical is under regulatory investigation for suspected violations of information disclosure, raising concerns about its financial practices and potential fraud in its issuance process [2][8]. Financial Performance - The company experienced a significant decline in profit after its IPO, with total profit dropping from 238 million yuan in 2020 to 101 million yuan in 2021, a decrease of nearly 60% [3]. - For the first three quarters of 2022, the company reported a revenue of 2.963 billion yuan, a year-on-year decrease of 7.17%, and a net profit attributable to shareholders of only 5.7684 million yuan [3]. - The stock price has also declined from an IPO price of 36.65 yuan per share to 20.78 yuan per share as of November 25, 2022, indicating a state of loss [3]. Revenue Adjustments - In 2021, the company adjusted its revenue by over 200 million yuan, citing a shift from gross to net revenue recognition due to its role as an agent in trade transactions [4][5]. - In 2022, further adjustments were made, with nearly 400 million yuan being reclassified, as the company claimed it had control over the goods sold [5]. Audit Firm Changes - The company has changed its auditing firms multiple times, raising red flags about its financial oversight. The initial auditor was Guangdong Zhengzhong Zhujiang, followed by Lixin, and then Zhongxinghua [6]. - The current auditor, Zhongxinghua, faced regulatory penalties for non-compliance during the audit of JuShi Chemical's 2022 annual report [6]. Client Relationships and Transactions - Two major clients, Foshan Qizheng Technology Co., Ltd. and Foshan Tianhua Technology Co., Ltd., were involved in significant trade transactions with JuShi Chemical, but both companies were deregistered in February 2023 [9][10]. - The company engaged in stock transactions with shareholders of these clients, raising questions about the legitimacy of its business practices [13][15]. Regulatory Investigation - The regulatory investigation into JuShi Chemical is focused on potential fraudulent issuance and misleading financial disclosures, particularly concerning its revenue recognition practices and client relationships [2][8].