Jiaoda Onlly has received an advance notice of administrative penalty from the Shanghai Securities Regulatory Bureau. The bureau plans to issue a warning and impose fines on the company and relevant responsible personnel, citing false records in the 2023 accounting error correction announcement and the 2024 annual report. The Shanghai Securities Regulatory Bureau believes the company lacked sufficient accounting basis for reversing impairment provisions related to historical bridge loan transactions between its subsidiary Onlly Microcredit and Jiuding Pawn, and is suspected of inflating its 2024 total profit by 23.5 million yuan, accounting for 60.26 percent of the total profit disclosed in that year's annual report. People familiar with the matter said Jiaoda Onlly has initiated an appeal process, arguing that the relevant accounting treatments are all based on objective grounds. The additional impairment provision in 2021 was made based on impairment indicators that existed at the time, and the reversal in 2024 was a reasonable disposal after the ownership of the funds was clarified and legal obstacles were removed. The penalty decision has not yet been formally issued, and the company's production and operations remain normal.
Shanghai Jiaoda Onlly Co LtdFacing proposed penalty for false records in annual report, inflating profit by 23.5 million yuan.
Shanghai DaZhong Public Utilities Group Co Ltd