On the evening of January 30, Kanglongda, a leading glove reporter, announced that the company received the "Administrative Penalty Decision" issued by the Securities Regulatory Commission on the same day. Due to violations of laws and regulations, the company, the actual controller, and the then secretary of the board of directors were all punished, with a total fine of 7 million yuan. The company and the actual controller were fined a total of 7 million yuanAccording to the announcement, in October 2022, Kanglongda and the former chairman Zhang Jianfang were filed by the China Securities Regulatory Commission on suspicion of illegal information disclosure; In October 2023, the company received the "Advance Notice of Administrative Punishment"; On January 30, 2024, the company received the "Administrative Penalty Decision". 
According to the penalty decision, after investigation, Kanglongda and others had three illegal facts. First, Zhang Jianfang failed to inform the listed company of the "Memorandum of Cooperation" in a timely manner, resulting in Kanglongda's failure to make an announcement in a timely manner; second, Kanglongda failed to timely disclose the major risks of the listed company involved in the "Termination of Cooperation Basic Agreement"; Third, there are false records in Kanglongda's 2020 annual report. According to the facts, nature, circumstances and degree of social harm of the parties' illegal acts, the CSRC decided: 1. Order Kanglongda to make corrections, give a warning, and impose a fine of 3 million yuan. 2. Zhang Jianfang, the actual controller of Kanglongda, the chairman and general manager of the company at the time, was given a warning and fined 1.5 million yuan as the actual controller; As the person in charge who was directly responsible for Kanglongda's failure to timely fulfill its information disclosure obligations in accordance with the law and the illegal acts of false records in the 2020 annual report, he was fined 600,000 yuan and 900,000 yuan respectively. The above-mentioned violations are combined with a fine of 3 million yuan. 3. Chen Weili, then secretary of the board of directors and chief financial officer, was given a warning, and as other directly responsible persons for Kanglongda's failure to timely fulfill its information disclosure obligations in accordance with the law and false records in the 2020 annual report, a fine of 400,000 yuan and 600,000 yuan were imposed respectively. The above-mentioned violations are combined with a fine of 1 million yuan. The total amount of the above fines amounted to 7 million yuan. It is expected to be a loss in 2023On the same day, Kanglongda released a performance forecast, saying that it expects a net loss of 92 million yuan to 1 million yuan in 20233.5 billion yuan, a year-on-year decrease of 144% to 1646%。It is understood that Kanglongda is the first listed company of functional labor protection gloves in China. At present, in addition to hand protection business, the main business also includes lithium battery new energy business. As for the main reasons for the pre-loss of performance in 2023, Kanglongda said that first, affected by external factors such as the macroeconomic environment and lower-than-expected industry demand, the company's holding subsidiaries Jiangxi Tiancheng Lithium and Jiangxi Xiecheng Lithium have experienced a large year-on-year decline in the lithium salt product market, and the profit attributable to the parent company has decreased significantly compared with the same period last year. Second, the company's functional labor protection gloves are mainly exported, involving many overseas countries, and the company's foreign exchange settlement business is large, mainly in US dollars. In order to control risks, maintain exchange rate stability, and reduce the risks caused by foreign exchange rate fluctuations, the general meeting of shareholders of the company authorized the board of directors to carry out foreign exchange derivatives trading business in financial institutions. Since 2023, due to the sharp depreciation of the RMB exchange rate against the US dollar, the US dollar exchange rate locked in foreign exchange derivatives transactions is lower than the spot exchange rate, resulting in a large loss compared with the same period last year. Third, the company has conducted an impairment test on the relevant asset groups including goodwill of its holding subsidiary, Jiangxi Tiancheng Lithium, and there have been signs of impairment, and it is expected to make a provision for goodwill impairment of 70 million yuan to 80 million yuan. As of January 30**, Kanglongda was trading at 2067 yuan, since January**3214%, the latest market value of 3.4 billion yuan. 
Editor: Captain Review: Chen Siyang.