Jiangsu Zhongshe Group Co Ltd

ST Zhongsheng released its 2026 interim report. As of June 30, total operating revenue was 166 million yuan, up 5.54 percent year-on-year. Net profit attributable to the parent company was negative 8.14 million yuan, a loss reduction of 3.6 million yuan compared with the same period last year. Net cash inflow from operating activities was 10.71 million yuan, an increase of 25.9 million yuan year-on-year, marking three consecutive years of growth. The company's latest asset-liability ratio was 56.61 percent, gross margin was 20.95 percent, return on equity was negative 1.77 percent, and diluted earnings per share was negative 0.05 yuan.

ST Zhongshe disclosed its 2026 semi-annual report. In the first half, it achieved total operating revenue of 166 million yuan, up 5.54 percent year on year. Net profit attributable to the parent company was a loss of 8.1363 million yuan, compared with a loss of 11.7389 million yuan in the same period last year. Net profit after deducting non-recurring items was a loss of 8.4432 million yuan, compared with a loss of 13.392 million yuan a year earlier. Net cash flow from operating activities was 10.7143 million yuan, versus negative 15.1901 million yuan in the prior-year period. Basic earnings per share for the reporting period were negative 0.0521 yuan, and the weighted average return on net assets was negative 1.76 percent. The company's main businesses include planning consulting and survey design, engineering supervision, project management, engineering general contracting, and new material sales and construction.

The China Securities Regulatory Commission recently released its accounting supervision report on annual financial reports of listed companies for 2025. It shows that 214 listed companies that disclosed annual reports on time received non-standard audit opinions, including 87 with qualified opinions and 18 with disclaimers of opinion. According to Wind data, as of August 19, more than 160 A-share listed companies had been placed under ST or asterisk ST risk warnings this year, with over 140 added since the second quarter. They include former semiconductor leader with a market value of 100 billion yuan, now known as ST Wingtech, and the veteran ChiNext company ST Huayi. The triggers were mainly financial underperformance or loss of financial credibility. For example, ST Zhongshe was flagged because total profit, net profit, and net profit excluding non-recurring items were all negative, while revenue excluding non-recurring items failed to reach the 300 million yuan threshold. ST Weiling simultaneously triggered negative net assets at period end and a disclaimer of opinion on internal control auditing. Dozens of companies such as ST Jiaoang, ST Rebecca, and ST Guangtang were placed under risk warnings for financial fraud or distorted financial data. Regulatory compliance risks were also prominent. ST Xilinmen was flagged because the controlling shareholder's non-operating fund occupation and outstanding irregular guarantees each exceeded 5 percent of net assets, and internal control received an adverse opinion. ST Jinhongshun received an additional risk warning due to an adverse internal control opinion and non-operating fund occupation of 107 million yuan by actual controller Liu Xu. Regulators are accelerating the establishment of a normalized delisting framework. In April 2026, the Shanghai, Shenzhen, and Beijing stock exchanges revised trading rules, adjusting the daily price limit for risk-warning stocks on the Shanghai and Shenzhen main boards from 5 percent to 10 percent, effective July 6. The four major mandatory delisting standards covering financial, trading, regulatory compliance, and major illegal conduct categories have been comprehensively upgraded.