Jilin Forest Industry warned over disclosure failures, faces regulatory scrutiny

Jilin Forest Industry has been issued a warning letter from the Jilin Securities Regulatory Bureau for failing to disclose litigation and arbitration matters totaling CNY 180,339,900. This amount represents 10.93% of its audited net assets. The non-disclosure involved 12 cases over a 12-month period ending January 8, 2024. The company's chairman, general manager, and board secretary were held primarily responsible and will be recorded in the securities and futures market's integrity archives.

The company plans to submit a rectification report within 30 days and will monitor related litigation. One case involved a CNY 118,811,129.33 construction contract dispute, where a subsidiary of Jilin Forest Industry prevailed. This victory, already reflected in 2024 financial statements, is not expected to impact 2025 profits.

Jilin Forest Industry will also hold its third extraordinary general meeting of 2025 on December 29, 2025, to approve the reappointment of Da Hua Certified Public Accountants as its auditor for 2025. Audit fees will remain at CNY 1,120,000.