Meihua Group faces legal woes as founder is indicted

Meihua Holdings Group (SSE: 600873) is navigating a complex situation as its former leader, Meng Qingshan, faces indictment for alleged securities market manipulation. The indictment follows a prior regulatory action by the China Securities Regulatory Commission (CSRC). Despite these legal headwinds, Meihua assures investors that Meng Qingshan retired in 2017 and is no longer involved in operations. In other news, Meihua Group reported a decrease in revenue, however, the company successfully completed an operational transformation through several optimization techniques. For the fiscal year 2024, the company posted revenue of 25.069 billion yuan, with significant investments in sustainable growth and new business initiatives. Additionally, Meihua provided key financial data and strategies for the coming year in its 2024 annual report. Meihua plans to focus on the development of its business in the food and healthcare sectors.