Shanghai Fenghwa faces potential delisting risk

Chongqing Fenghua (Group) Co., Ltd. (SSE:600615) has issued a response to the Shanghai Stock Exchange (SSE) regarding concerns about its 2024 performance forecast. The company anticipates its 2024 revenue, excluding deductions, to be below RMB 300 million. If the audited total profit and net profit (whichever is lower before or after deducting non-recurring gains and losses) are negative, the company’s stock will be subject to a delisting risk alert. Preliminary estimates indicate the main contributor to revenue is their magnesium alloy die casting technology and home furnishing division with revenue coming in at RMB 18.88 million, where their magnesium alloy die-casting sales volume increased 20.73% YOY to 405,940,000 units, their sales of steering wheel and seat track products coming in at 281.43 million units (+6.6%) and 281.43 million units (+98.39%) respectively. The company reminds investors that the audit process is ongoing, and final figures may differ.