ST Mubang announced that its wholly-owned subsidiary Guangxi Mubang High-Tech New Energy Company has been ordered by the Inspection Bureau of the Guilin Municipal Tax Service, State Taxation Administration, to repay retained value-added tax refunds and late payment fees totaling about 103 million yuan, including late fees of 26.22 million yuan, because it did not meet the conditions for VAT retained refunds. Guangxi Mubang had not officially commenced production from its establishment through the end of 2024 and had no manufacturing sales revenue, so it did not qualify for the retained refund. The company fully repaid the retained VAT refund of 76.04 million yuan in May 2026, and now needs to pay late fees of 26.22 million yuan. The company stated that this tax treatment does not involve administrative penalties, is expected to reduce current net profit by about 26.219 million yuan, and does not involve corrections to prior financial data.
Guangdong Banbao Toy Co LtdSubsidiary ordered to repay VAT refund and late fees, reducing net profit by about 26.2 million yuan.
