Multiple Companies Respond to Performance Forecast Inquiry Letters

Securities Daily Reporter Gui Xiaosun

On March 14, Weilang Wine Co., Ltd., Yashi Chuangneng Technology (Shanghai) Co., Ltd. (hereinafter referred to as “Yashi Chuangneng”), Ningbo Bodo Co., Ltd., and Panda Financial Holdings Co., Ltd. issued announcements in response to previous performance forecast inquiry letters. In these replies, the companies provided detailed explanations regarding customer situations mentioned in the inquiry letters, the reasonableness of significant quarterly performance increases, changes in gross profit margins, and other related matters.

Chen Jingjing, General Manager of Hebei Huanbo Technology Co., Ltd., told Securities Daily that performance forecast inquiry letters serve as a risk screening mechanism. One of their core values is to address the issue of “information asymmetry” in the capital markets and effectively protect the legitimate rights and interests of investors, especially small and medium investors. Small and medium investors often face informational disadvantages and find it difficult to directly verify the authenticity and reasonableness of listed companies’ performance forecasts. Regulatory inquiries compel companies to disclose additional details, such as the reasons for performance fluctuations, accounting treatment basis, and potential risks, making this information public. This allows investors to assess the company’s operational status more comprehensively and objectively.

Overall, performance inquiry letters tend to focus on “attention to detail and substance,” moving beyond superficial data disclosure to in-depth verification of business authenticity and accounting compliance, such as questioning the composition of distributors, payment collection status, and impairment provision basis.

For example, Yashi Chuangneng’s announcement shows that the company expects a net profit attributable to the parent company after non-recurring gains and losses to be a loss of 1.29 billion to 860 million yuan in 2025. The company received a regulatory work letter from the Shanghai Stock Exchange requesting explanations on various operational and performance details. In its March 14 announcement, Yashi Chuangneng responded to questions about operational status, accounts receivable, and major litigation.

“This can push companies to disclose more specific and transparent information. Through in-depth inquiries, it can prevent listed companies from using performance forecasts to ‘walk the line’ or mislead investors, thereby purifying the information disclosure environment in the capital market from the source,” said Wang Zhibin, a lawyer at Shanghai Minglun Law Firm, to Securities Daily. He pointed out that replying to performance forecast inquiries is not merely a passive response but an important opportunity for listed companies to fulfill their information disclosure obligations and improve internal governance. The quality of their responses directly reflects their compliance awareness and governance level. In practice, companies with stronger compliance awareness tend to provide more detailed, specific, and logically clear replies.

Public information shows that in recent years, regulators have focused more on sensitive issues such as abnormal performance fluctuations, large asset impairments, precise “borderline” revenue recognition, and non-related-party related-party transactions. By verifying transaction backgrounds, customer authenticity, timing of revenue recognition, and post-period collection, they maintain strict control over the first line of information disclosure. This normalized, in-depth supervision has become an important tool for early detection and management of risks in the capital markets.

For listed companies, timely, detailed, and high-quality responses to inquiry letters are not only a legal obligation but also an important window to demonstrate transparency and governance capabilities. From the market ecosystem perspective, the performance forecast inquiry mechanism is forming a virtuous cycle: regulators ask detailed, accurate, and thorough questions, which compels listed companies to clarify, provide comprehensive information, and ensure transparency. Ultimately, this helps investors understand clearly and invest with confidence, laying a solid foundation for value investing.