China ** Daily reporter ST Meishang (i.e., "Meishang Ecology"), which disclosed its 2023 annual performance forecast on January 29, received a letter of regulatory concern on January 30. 
The Shenzhen Stock Exchange requires the company to explain the reasons and reasonableness, and explain whether there may be a negative audited net profit in 2023 and an operating income of less than 100 million yuan after deduction, and there is a risk of being superimposed on the risk of delisting. Meishang Ecology is mainly engaged in ecological landscape construction, covering ecological restoration, ecological cultural tourism, and ecological products, and the company has been in trouble since 2020, with huge losses of 1 billion yuan and 700 million yuan in 2021 and 2022. In May last year, the Shenzhen Stock Exchange issued an inquiry letter for the company's 2022 annual report, which has been postponed and has not yet responded. Due to the large amount of capital occupation by the controlling shareholder, losses for three consecutive years, and non-standard opinions issued by the audited institution, Meishang Ecology has been superimposed with other risk warnings in 2021 and 2023, namely ST. Revenue increased suddenly in the fourth quarter of last yearOn January 29, 2024, Meishang Ecology disclosed the "2023 Annual Performance Forecast", which is expected to have an operating income of 1 in 20230.9 billion to 1400 million yuan, deducting business income unrelated to the main business and income without commercial substance is 108.1 billion to 13.9 billion yuan. In addition, the company expects the net profit attributable to the parent company in 2023 to be -6200 million to -4400 million yuan, net profit after deducting non-recurring gains and losses was -4800 million to -3400 million yuan; It is estimated that the owner's equity attributable to shareholders of the listed company at the end of the period will be 1$3.5 billion to $17.5 billion yuan. However, the company's third quarter 2023 report showed that its operating income for the first three quarters of 2023 was 4585930,000 yuan, combined with the relevant data of the performance forecast, means that the company's operating income in the fourth quarter of last year was 6314070,000 yuan to 9414070,000 yuan, far greater than the cumulative operating income in the first three quarters. To this end, in the inquiry letter, the Shenzhen Stock Exchange first requires the company to list the amount and proportion of revenue by product and business and the year-on-year changes during the reporting period, and explain whether the subdivided products or businesses include business income unrelated to the main business, as well as the income without commercial substance and the specific amount. Secondly, the company was required to explain the reasons and reasonableness of the large revenue scale in the fourth quarter of last year based on the industry environment, business development, revenue recognition model, and seasonal characteristics of revenue in previous years. 
Third, the regulator requires the company to explain whether the company's audited net profit in 2023 is negative and the operating income after deduction is less than 100 million yuan, and whether the company has the risk of being superimposed on the delisting risk warning, and make a special risk warning. At present, the company is riddled with debts and continuous litigation, and from February 2021 to January 2024, the company and its subsidiaries have a total of 29 lawsuits involved6.2 billion yuan, accounting for 428 percent of the company's audited net assets in 202241%。The Shenzhen Stock Exchange requires that the company's current assets, liabilities, operating finances, cash flow and other aspects be explained whether there is any material uncertainty in its ability to continue operations. The 2022 annual report inquiry letter has not been replied toIt is worth noting that Meishang Ecology actually owes the exchange a number of letters of inquiry and concern that have not been replied to, and they have continued to be postponed until now. 
On May 15, 2023, Meishang Ecology received the "Inquiry Letter on the Annual Report of Meishang Ecological Landscape Co., Ltd." issued by the Shenzhen Stock Exchange, requiring the company to submit and disclose the relevant explanatory materials before May 29, 2023. The company said that after receiving the "Annual Report Inquiry Letter", it attached great importance to it and immediately organized relevant departments and relevant parties to implement and reply to the issues involved. However, due to the many issues and contents involved in the "Annual Report Inquiry Letter", the company needs to verify item by item and needs to be verified and expressed by the audit institution, and the company is currently actively sorting out the relevant issues. The company was initially ST due to the large amount of capital occupied by the controlling shareholder. As of December 31, 2020, the controlling shareholder of the company occupied 99.1 billion yuan. As of April 30, 2021, the controlling shareholder has returned 9,617 of the occupied funds610,000 yuan, there are still 89.5 billion yuan has not been returned, and the company has touched other risk warnings. Subsequently, in 2023, the company's net profit in the last three years of 2020, 2021, and 2022 will be -91.86 million yuan and -10., respectively4.5 billion yuan, -68.7 billion yuan, touching the condition that "the net profit before and after deducting non-recurring gains and losses in the last three fiscal years is negative". At the same time, the auditor issued an audit report with an unqualified opinion on the company's 2022 financial report with a paragraph of material uncertainties related to continuing operations and a paragraph with emphasis, and the company was superimposed with other risk warnings. On December 5, 2022, the Company also received the Decision Letter from the Shenzhen Intermediate People's Court, in which the Court decided to initiate the pre-reorganization procedure against the Company and appointed Beijing King & Wood Mallesons (Shenzhen) Law Firm as the administrator of the Company during the pre-reorganization period. Up to now, the company has not received the court's acceptance ruling, and there is uncertainty as to whether the court will accept the company's reorganization and whether the company will enter the reorganization procedure. As of January 30, 2024**, the market value of Meishang Ecology is less than 1 billion yuan, down 96% from the peak. 
Editor: Captain Review: Chen Siyang.