Shanghai Xuerong faces loss, changes auditor, alters shareholding

** Shanghai Xuerong Bio-Technology (SZSE:300511) faces financial headwinds, reporting a net loss of CNY 617.07 million for 2024, compared to a profit of CNY 188.06 million in the prior year. Contributing factors include a challenging consumer market, intense competition in the edible mushroom industry, and a strategic reduction in production scale. As a result, the company's board has approved asset impairment provisions to account for decreased asset values. In light of these challenges, the company also announced a change in its auditor to Da Hua Certified Public Accountants, citing the need for enhanced auditor independence. There are also important updates for shareholders. Chairman Yongping Yang, is set to transfer a portion of his shares to Shanghai Wanzi Qianhong Intelligent Technology, potentially ceding control of the company. Moreover, in 2024, 1,634 convertible bonds were converted to common stock, resulting in the issuance of 39,080 new shares. The current authorized share capital of Shanghai Xuerong is 498,819,678 shares.