CICC flags Everwin Precision Technology for related-party transaction non-compliance

China International Capital Corporation Limited (CICC) released its semi-annual follow-up report for the first half of 2025 on Shenzhen Everwin Precision Technology Co., Ltd. While CICC generally found the company's information disclosure and internal controls to be in order, a key compliance issue was identified concerning related-party transactions.

During the review of 2024 and projected 2025 related-party transaction documents, CICC discovered that Everwin's cumulative related-party purchases with Sichuan Fengying in 2024 amounted to 41,458,300 yuan. This figure exceeded the disclosure threshold and was not timely subjected to the required review procedures, despite the company's audited net assets as of year-end 2023 being 6,131,418,400 yuan. Everwin subsequently disclosed this in an announcement on April 18, 2025, alongside its 2024 annual report.

In a separate development, CICC itself received regulatory measures from the Shenzhen Stock Exchange on March 14, 2025. This was due to deficiencies in its role as sponsor for the initial public offering of Qingdao Koke Electronics Research Institute Co., Ltd., including inadequate verification of R&D investment, revenue recognition, procurement management, and production cost accounting, leading to inaccurate verification opinions. CICC is actively rectifying these issues.