Huada Technology has responded to the Shanghai Stock Exchange's inquiry regarding quarterly fluctuations in fund items in its 2025 annual report. The company's prepayments reached 80.6779 million yuan at the end of the first quarter of 2025 and rose to 97.6539 million yuan at the end of the first quarter of 2026, but stood at only 31.2161 million yuan at year-end. Other non-current assets were 158 million yuan at the end of the third quarter, dropping to 29.7918 million yuan at year-end. Other receivables once reached 130 million yuan at the end of the third quarter, later corrected to 10.9549 million yuan, and were 9.1275 million yuan at year-end. Other payables were 223 million yuan at the end of the first quarter and 55.2943 million yuan at year-end, including a balance of 13.0018 million yuan with an individual named Deng Xiaolan. The company explained that the prepayment fluctuations stem from genuine business activities, including a 22 million yuan material preparation refund from GAC Baoshang due to a customer vehicle model discontinuation, and a 54.438 million yuan prepayment to Chizhou An'an to lock in aluminum prices, of which 47 million yuan was later refunded by the supplier. The high level of other non-current assets was due to equipment not yet delivered, which was transferred to construction in progress in the fourth quarter. The inflated other receivables resulted from a duplicate reclassification of negative internal transaction balances. The 13 million yuan under Deng Xiaolan's name is a working capital loan for its subsidiary Yuntu Electronics. The 16.1764 million yuan owed by Haining Yihua has been fully provisioned for bad debts. The two companies share the same registered address only because they lease factory premises for supporting production, and there is no related-party relationship.
Huada Automotive Tech Corp LtdSSE inquiry reveals questionable quarter-end fund surges and year-end drops, indicating potential accounting irregularities.