Fangda Special Steel receives warning letter from Jiangxi regulator

Fangda Special Steel Technology Co., Ltd. (SSE:600507) announced that it has received a warning letter from the Jiangxi Securities Regulatory Bureau (the “Bureau”) regarding inaccurate disclosures of operating income and costs in its 2024 quarterly and semi-annual reports. The Bureau found that Fangda Special Steel did not prudently recognize revenue according to accounting standards. The company corrected these inaccuracies in an announcement on April 30, 2025. The regulator has issued warning letters to the company, former Chairman Ju Qiping, and former CFO Yan Jun for failing to ensure accurate financial disclosures, as required by regulations. Fangda Special Steel stated that it will enhance internal controls, accounting practices, and regulatory compliance to prevent recurrence. The company clarified that the corrections relate to certain trade businesses and do not impact the company's overall financial condition. The company will not face any risks associated with the received warning letter and all other normal operation activities shall ensue.