*ST Fucheng disclosed an announcement replying to the Shanghai Stock Exchange's regulatory work letter, providing explanations on sales authenticity and other matters. The exchange's inquiry letter pointed out that the company achieved sales revenue of 34.44 million yuan through intermediaries in 2025, and the annual auditor was unable to confirm the authenticity of the related sales, with some suppliers and customers overlapping. The company replied that live cattle sales were conducted through intermediary Wang Jie, with compliant sales procedures and genuine business. However, the annual auditor stated that during telephone interviews, the intermediary could not confirm specific sales details and was unable to provide contact information for end sales, and noted that the gross margin for this portion of sales was significantly higher than the company's full-year gross margin. In addition, the reply letter showed that Sanhe Huiyong Animal Husbandry Technology Co., Ltd. and Sanhe Ruilong Beef Cattle Breeding Co., Ltd. are both suppliers and customers. The company explained this as sales of culled cows and purchases of young bulls, with different transaction content. However, the annual auditor found that the reply letters from both companies were stamped with the seal of Sanhe Ruilong Beef Cattle Breeding Co., Ltd., and that the lease contracts contained unreasonable circumstances such as a significant increase in area and a notable decrease in unit rent, making it impossible to determine related-party relationships or the reasonableness of the transactions.
Fortune Ng Fung Food Hebei Co LtdThe company is under regulatory scrutiny for sales authenticity issues, with the auditor unable to confirm sales and noting irregularities.