Anoky faces scrutiny over past guarantee, project delays

Cathy Huitong Securities, in its semi-annual supervisory report for Shanghai Anoky Group, revealed that the company faced issues regarding an external guarantee made by Shanghai Shangfu Smart Technology Co., Ltd. for a RMB 7,700,000 personal loan. This guarantee, established in August 2022 before Shangfu became a wholly-owned subsidiary of Anoky, lacked timely approval and disclosure. The report confirms the guarantee has since been lifted, and Anoky conducted a supplementary review and disclosure, with independent directors expressing approval. The company is implementing internal control improvements and strengthening legal and operational compliance.

Operational challenges were also noted, with the company’s operating income for January-June 2025 increasing by RMB 36,333,500, marking a 7.63% year-on-year growth. However, net profit declined significantly, turning from a profit to a loss compared to the previous year, primarily due to intense market competition, decreasing sales prices, and adjustments in product structure leading to a drop in gross profit margin.

Furthermore, a significant project, the second phase of the Yantai 30,000-ton dye intermediate production facility, originally scheduled for completion by July 31, 2025, has been postponed to December 31, 2025, following a board resolution.