Xinjiang Talimu subsidiary funds misuse uncovered; shares tumble

Xinjiang Talimu Agriculture Development announced an internal review and corrective actions following a special audit that revealed non-compliant fund practices at several of its subsidiaries, including Xinjiang Talimu River Seed and others. The audit, Daxin Special Audit No. [2025] 12-00003, exposed non-operating funds and other related funds misuse, triggering concerns among shareholders. While the audit highlighted that key figures of consolidated statements adhere to accounting standards, it unearthed potential risks associated with funds management. In response, Xinjiang Talimu's Board convened on February 27, 2025, approving measures to enhance internal financial controls and asset evaluation, as well as establishing a special working group. This includes a proposal to write down asset value and to submit it to the shareholders during the conference, including an agenda regarding the misuse of funds. A plan to meet on March 21st to address the audit's implications. The findings have led to scrutiny of asset valuations, management practices, and the independence of Xinjiang Talimu's board.