ST Jinding disclosed in its reply to a Shanghai Stock Exchange regulatory inquiry that former chairman Liang Fei provided false information to the general manager's office meeting, causing the company to unknowingly extend a 20 million yuan loan to its wholly-owned subsidiary Zhonghui Metal. Zhonghui Metal subsequently made a prepayment of 19.8 million yuan to supplier Zhongye Zhongkuang, of which only 1.1 million yuan has been recovered, leaving 18.7 million yuan unreturned. An on-site investigation by the listed company found that Zhongye Zhongkuang's registered address is a hotel and no office premises could be located. The supplier's creditworthiness and performance capability are in doubt, and the rationality and commercial substance of the related business are unclear. Zhongshen Asia Pacific Certified Public Accountants issued a qualified opinion on the company's 2025 financial statements and an adverse opinion on its internal control report, pointing out that the company has significant deficiencies in the authorization and approval of major transactions of subsidiaries and large fund payments. Liang Fei stepped down as chairman in February this year and is currently involved in multiple judicial cases and subject to high consumption restrictions, with the amount involved reaching 2.027 billion yuan.
Sichuan Golden Summit Group Joint Stock Co LtdST Jinding disclosed irregularities in loan and prepayment, with former chairman providing false information, leading to qualified audit opinion and adverse internal control opinion.
Zhonghui Metal, as a wholly-owned subsidiary, made a prepayment of 19.8 million yuan to a supplier with questionable creditworthiness, and only 1.1 million has been recovered.
Zhongshen Asia Pacific is the auditor that issued qualified and adverse opinions, but the news is about the company's irregularities, not about the auditor itself.