China Baoan reveals misappropriation, sets provision at CNY 395.5m

** China Baoan Group (SZSE: 000009) disclosed instances of affiliated companies' misappropriation of funds, requiring a significant CNY 395.5 million provision against assets. These included account receivables, prepayments and intangible asset write-downs. The Annual Special Audit Report also noted that auditors identified significant accounting policy changes related to the classification of guarantee-related expenses, which now impact operating results. Additionally, the board approved a profit distribution of CNY 0.03 per share. In all, this financial report identified risks, structural matters and financial factors impacting overall stakeholder value.