Suzhou Jin Hong Shun Auto Parts Co Ltd Class A

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.

ST Jinhongshun announced that its actual controller, Liu Xu, has been placed under investigation by the Jiangsu Bureau of the China Securities Regulatory Commission for suspected illegal information disclosure. After multiple failed attempts to contact him, the bureau served the Case Filing Notice via public announcement, requiring Liu Xu to cooperate with the investigation within 30 days, with the notice deemed served upon expiry. The company had previously received a case filing notice from the CSRC on June 26, 2026, for suspected illegal information disclosure. Since mid-December 2025, the company has been unable to reach Liu Xu, who has not performed duties on-site since the end of September 2025. Liu Xu also has issues with non-operational fund appropriation, with an outstanding balance of 106 million yuan as of June 18, 2026, which has not been repaid. Additionally, Liu Xu has been placed on the list of dishonest persons subject to enforcement, a fact the company and its board had not been previously notified of.