*ST Panda's fourth warning of delisting risk, and may also face claims due to previous information disclosure issues

Ask AI: Why is the audit report for *ST Panda’s financial statements showing a red alert from the accounting firm?

Radar Finance | By Yang Yang, Edited by Li Yihui

On March 16, *ST Panda (600599) released its fourth risk warning announcement, stating that the company’s stock may be delisted. Because Liananda Certified Public Accountants issued an audit report with a disclaimer of opinion on the company’s 2024 annual financial statements and an internal control audit report with a negative opinion, the company’s stock has been subject to delisting risk warning and other risk warnings starting May 6, 2025.

If the company’s 2025 annual report does not meet the conditions for lifting the delisting risk warning, its stock will face the risk of being delisted. In addition, the company has been placed on file for investigation by the China Securities Regulatory Commission for alleged violations of laws and regulations related to information disclosure.

As of the date of the announcement, there has been no substantive progress regarding the matters involved in the non-standard opinions, and the rectification work is still ongoing. The company reminds investors to pay attention to investment risks, with specific financial data to be based on the audited 2025 annual report.

Of note is that *ST Panda may also face claims related to information disclosure issues.

In response, Song Lianmin, the director of Jiangsu Shengheng Law Firm, which has represented many stock claims and has won compensation, told Radar Finance that under the Securities Law and relevant regulations, if information disclosure by a listed company is not timely or not accurate and causes losses to investors, affected investors may claim compensation in accordance with the law. Investors who bought *ST Panda shares between December 2, 2024 and April 27, 2025, and held the shares at the close of trading on April 27, 2025; or investors who bought *ST Panda shares between the time after listing and December 29, 2025, and held the shares at the close of trading on December 29, 2025, may register to participate in the claims through the official account “Lei Zhubā” (Lei Zhubā code: 99). No fees will be charged before any compensation is awarded.

According to Tianyancha information, *ST Panda was established on December 12, 1999, with a registered capital of 16600 million yuan RMB. The legal representative is Wang Zheng, and its registered address is 589 Jinsha North Road, Jingsha North Road, Liuyang City, Hunan Province. Its主营业务 (main business) is the export trading of various firecracker and firework products.

At present, the company’s chairman is Wang Zheng, the board secretary is Chen Mo, the number of employees is 140, and the actual controller is Zhao Weiping.

The company has 14 investee companies, including Panda Capital Management Co., Ltd., Tibet Panda Microcredit Co., Ltd., Panda Financial Advisory Management Co., Ltd., Jiangxi Panda Fireworks Co., Ltd., Xusheng County Panda Fireworks Co., Ltd., and others.

In terms of performance, in 2022, 2023, and 2024, the company’s operating revenue was 329 million yuan, 228 million yuan, and 324 million yuan respectively, up 13.86%, -30.66%, and 41.82% year over year. Attributable net profit to the parent was 90.36 million yuan, -212 million yuan, and -474 million yuan respectively; year-over-year growth in attributable net profit was 25.56%, -335.01%, and -123.42% respectively. During the same period, the company’s asset-liability ratio was 20.48%, 25.03%, and 81.18% respectively.

In terms of risks, Tianyancha information shows that the company itself has 103 Tianyan risks, 59 Tianyan risks surrounding it, 90 historical Tianyan risks, and 151 risk warnings and reminders.