"Health wine's first stock" *ST Coconut Island has reported losses for five consecutive years and faces delisting risk

On the evening of March 25, Hainan Yedao (Group) Co., Ltd. (hereinafter referred to as *ST Yedao, 600238.SH) issued a “Stock Trading and Delisting Risk Warning Announcement.”

The announcement stated that as of the date of this announcement, the audit work for the company’s 2025 annual report is in progress. The previous annual audit firm conducted on-site visits to verify the terminal sales of the company’s Lu Gui Jiu, and as of January 30, 2026, the terminal sales ratio of this product is relatively low, approximately 20%. If subsequent checks show that the terminal sales affect the company’s operating income deduction amount, resulting in a post-deduction operating income of less than 300 million yuan, this may lead to the termination of the company’s stock listing after the disclosure of the 2025 annual report.

Currently, the annual audit firm is verifying the previous related sales return situation of ST Yedao and plans to revisit the main distributors of the Lu Gui Jiu Jia Pin series in the near future. If the annual audit firm cannot obtain sufficient appropriate audit evidence through verification, this matter may lead to the annual audit firm issuing a non-unqualified opinion on the company’s 2025 financial statements or internal controls, which may result in the termination of the company’s stock listing after the disclosure of the 2025 annual report.

On March 18, *ST Yedao announced that it recently received the Shanghai Stock Exchange letter No. [2026] 0414 regarding the “Regulatory Work Letter Related to Hainan Yedao (Group) Co., Ltd. 2025 Performance Forecast.” The performance forecast indicates that the company expects to achieve revenue of 172 million to 192 million yuan in the fourth quarter of 2025, accounting for about half of the total annual revenue for 2025, which is close to the total revenue for the entire year of 2024. The Shanghai Stock Exchange requires the company to distinguish major products and provide supplementary disclosures on sales unit prices, sales quantities, gross profit margins, sales policies, revenue recognition bases, and relevant policy changes, as well as to quantitatively analyze the reasons and rationality for the substantial year-on-year growth in operating revenue in the fourth quarter.

In response, the latest announcement released on March 25 stated that the company recently disclosed a “Response Announcement Regarding the Regulatory Work Letter Related to the 2025 Performance Forecast.” The announcement regarding the specific situation of returns in 2025 and other sales returns corresponds to the years 2019-2024. The annual audit firm has inspected the return applications, return agreements, return approval forms, and warehouse receipt confirmation documents provided by the company, and has also reviewed the sales contracts corresponding to revenue recognition for the relevant years, as well as some sales outbound documents. However, regarding the total return revenue of 5.1867 million yuan for 2019-2020, the return revenue of 13.8451 million yuan for 2021, and the revenue amount of 16.6573 million yuan corresponding to the debt discount handling of Du Qiu Company for the 2020-2021 period, relevant outbound documents, goods transportation documents, and other documents for the transfer of ownership have not yet been obtained, and further data collection and targeted audit procedures are planned.

According to the announcement issued by *ST Yedao on January 30, based on preliminary calculations by the finance department, the company expects to achieve a total profit of -25 million yuan for the 2025 fiscal year, with an expected net profit attributable to shareholders of the listed company of -29 million yuan, and a net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses of -23 million yuan. The expected operating revenue for the 2025 fiscal year is 370 million yuan, and the operating revenue after deducting revenue unrelated to the main business and revenue lacking commercial substance is expected to be 350 million yuan. The expected net assets attributable to shareholders of the listed company at the end of 2025 are 80 million yuan.

On April 30, 2025, due to the company’s audited net profit before and after deducting non-recurring gains and losses for the 2024 fiscal year being lower at -136 million yuan, and the operating revenue after deducting revenue unrelated to the main business and revenue lacking commercial substance being 175 million yuan, it has triggered the relevant provisions of the “Shanghai Stock Exchange Stock Listing Rules”; at the same time, the company’s internal control audit for the 2024 fiscal year was issued a negative opinion, and the net profit before and after deducting non-recurring gains and losses has been negative for the last three consecutive fiscal years, coupled with uncertainty in the ability to continue as a going concern, the company’s stock will be subject to delisting risk warnings and other risk warnings. The company’s stock will be subject to delisting risk warnings starting from May 6, 2025, and the stock abbreviation will be changed to “*ST Yedao.”

Public information shows that *ST Yedao’s main products include Lu Gui Jiu, Hai Wang Jiu, and sauce-flavor Baijiu, among others. Additionally, the company is also involved in coconut juice and other specialty ecological beverage businesses. The company was listed in January 2000 and was profitable for many years until 2008. Relevant financial reports indicate that after its first loss in 2008, it recorded losses in 2011, 2016, 2017, 2019, and from 2021 to 2024, with a projected loss in 2025; in the last five years, it has reported losses of 60.14 million yuan, 118 million yuan, 149 million yuan, 136 million yuan, and 29 million yuan, continuing to incur losses for five years.

The latest announcement also reminds investors that the company’s stock price has fluctuated greatly recently, closing at the limit-up price on March 25. Investors are advised to pay attention to trading risks and the risk of the stock possibly being delisted.

As of the time of writing on March 26, the stock price of *ST Yedao is reported at 5.19 yuan per share, down 3.53%, with a total market value of approximately 2.326 billion yuan.