Fucheng Shares, often referred to as the "first funeral services stock," unexpectedly announced on April 24th that the disclosure of its 2025 annual report and 2026 first-quarter report, originally scheduled for April 25th, would be postponed until April 30th.

In the announcement, the company revealed that its annual audit firm, Shenzhen Hongyi Accounting Firm, had issued an "unable to express an opinion" audit report on the company's 2025 financial statements. Additionally, the firm issued an "adverse opinion" on the company's internal controls.

This development has placed continued pressure on the company's stock price, resulting in unforeseen losses for many investors.

Legal counsel Liu Peng from Shanghai Huzi Law Office indicated that a pre-collection for investor claims has officially commenced. The scope of civil compensation liability for parties with information disclosure obligations in the securities market is limited to the actual losses incurred by the plaintiff due to misrepresentation.

Investors who purchased shares on or before April 24, 2026, and subsequently sold them at a loss or still held them after April 25, 2026, are eligible to register a claim.

Adding to the perplexity of the situation, while ostensibly disputing the audit findings, the board of directors of Fucheng Shares announced on April 29th its decision to reappoint Hongyi Firm as the company's auditor for the 2026 fiscal year. The decision to continue employing the same firm despite its negative assessments directly triggered regulatory thresholds under listing rules.

According to relevant regulations, because the 2025 financial report received an audit opinion of "unable to express an opinion," Fucheng Shares' stock was subjected to a delisting risk warning (*ST). Concurrently, due to the adverse opinion on internal controls, the stock received an additional special treatment risk warning (ST).

Trading in the company's shares was suspended for one day on April 30th, with the *ST designation formally taking effect on May 6th.

The company's journey from being the "first funeral services stock" to "*ST Fucheng" highlights a growing information disclosure crisis. For affected investors, actively participating in the claim process represents a rational choice for mitigating losses and protecting their rights.