Shanghai Broadband faces delisting risk amid financial woes, regulatory probe

Shanghai Broadband Technology announced it is under investigation by the China Securities Regulatory Commission for alleged information disclosure violations, which could lead to delisting. The company's 2024 operating revenue was CNY 17.2267 million, with negative total profit, net profit attributable to parent company, and non-recurring net profit. If 2025 annual results show similar negative profits and revenue below CNY 300 million, the company's shares will be terminated from listing.

In the first three quarters of 2025, the company reported operating revenue of CNY 5.4403 million, total profit of CNY 0.2033 million, net profit attributable to parent company of CNY 1.0620 million, and non-recurring net profit of -CNY 0.2372 million. Additionally, the company faces significant bad debt risk from a HK$18.72 million payment received for pre-paid petrochemical goods, following an 89.9% impairment provision due to the supplier's mandatory liquidation. Further impairment could negatively impact 2025 profits.

The company also disclosed that outstanding funds from its former controlling shareholder, Nanjing Sweet Group, persist, potentially leading to other risk warnings. Shanghai Broadband has engaged an auditing firm for its 2025 annual report to ensure transparency and compliance.