Dalian Bio-Chem Company Limited announced on April 27 that it has been formally placed under investigation by the China Securities Regulatory Commission due to suspected violations of information disclosure regulations. This announcement was accompanied by a separate notice correcting an "accounting error" involving tens of millions of yuan in revenue.
The company's announcement did not provide detailed reasons for the investigation. However, clues were evident in other documents released on the same day.
According to the Securities Law and related judicial interpretations, listed companies are liable for civil compensation if investors suffer losses due to false statements.
Investors who purchased shares on or before April 27, 2026, and subsequently sold or held them at a loss after April 28, 2026, may now be eligible to register claims.
Notably, alongside its 2025 annual report, the company issued corrections and retrospective adjustments to its 2024 financial data. The issue centers on its controlling subsidiary, Suzhou Core Wisdom Semiconductor Technology Co., Ltd.
An internal review revealed that the subsidiary had recognized revenue across incorrect accounting periods in 2024, involving an amount as high as 40.936 million yuan. This adjustment led to a significant restatement of financial performance.
The company's 2024 net profit excluding non-recurring items was sharply revised down from 103 million yuan to 85.6818 million yuan. As a result, the subsidiary, which had previously been reported as meeting its targets in April 2025, suddenly failed to achieve its performance commitment of 100 million yuan.
Artificially adjusting the timing of revenue recognition to embellish financial results is generally regarded as a serious failure of internal financial controls. This is believed to be the central focus of the regulatory investigation.
This suggests that the financial data disclosed by the company over the past year may have been inflated or inaccurately recorded. The CSRC's investigation is highly likely connected to this financial discrepancy exceeding 40 million yuan. Further details await the conclusion of the regulatory probe.
The secondary market reacted sharply, with the company's stock price under pressure after market opening, causing unexpected losses for over 30,000 shareholders. The window for submitting compensation claims is now open, and eligible investors are encouraged to participate.
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