On December 19, 2025, *ST Weihai (SZ002586, stock price: ¥4.10, market cap: ¥4.691 billion) finally submitted its response to the Shenzhen Stock Exchange’s inquiry letter regarding its 2023 annual report—nearly 20 months after receiving the initial request. The company also addressed a separate inquiry letter issued in May 2025 concerning its 2024 annual report.

The company, which had been under delisting risk warnings due to a 2022 audit report with a disclaimer of opinion, has seen a glimmer of turnaround after undergoing investigations, financial restatements, and executive reshuffles. Its stock will resume trading on December 23 with the delisting risk warning lifted.

*ST Weihai received the 2023 annual report inquiry from the Shenzhen Stock Exchange on May 5, 2024, requiring explanations on audit opinions, accounting corrections, and executive departures. However, the delayed response reflects complexities in rectifying accounting discrepancies and ongoing regulatory scrutiny.

According to disclosures, on July 27, 2023, *ST Weihai was notified of a China Securities Regulatory Commission (CSRC) investigation. By year-end 2023, the Ningbo CSRC branch issued a preliminary penalty notice, citing unreasonable full impairment of goodwill for subsidiary Shanghai Millennium Urban Planning & Engineering Design Co. in 2019 and flawed accounting for certain projects, which inflated 2021 profits and understated 2022 profits.

In January 2024, *ST Weihai disclosed accounting corrections for Shanghai Millennium’s revenue and costs from 2018 to 2022, covering goodwill impairment and receivables. The company asserted these adjustments did not alter annual profit/loss outcomes, except for 2021, and lacked material impact on financial statements.

Auditors confirmed that, per the Ningbo CSRC’s penalty decision and final corrections, *ST Weihai faces no major delisting risks, and prior accounting errors did not significantly affect its 2023 financials.

Separately, the simultaneous resignations of *ST Weihai’s board secretary and CFO in April 2024 raised concerns about financial reporting disputes. The company clarified their departures were personal, with no material disagreements. Auditors also found no evidence of fraud risks.

The December 19 announcement stated *ST Weihai’s shares will halt trading on December 22 and resume on December 23, with the stock symbol changing from *ST Weihai to ST Weihai after delisting risk warnings are lifted.

Notably, on April 26, 2024, auditors issued a standard unqualified opinion for *ST Weihai’s 2023 audit report and confirmed resolution of prior audit issues. A similar clean opinion followed for its 2024 report on April 27, 2025, meeting criteria for delisting risk warning removal.

However, other risk warnings remain due to a Ningbo CSRC preliminary penalty notice on April 18, 2025, for misreported financial metrics in annual reports. *ST Weihai plans to apply for lifting these warnings 12 months after the CSRC’s final penalty decision.

Financial data shows *ST Weihai ended 2024 with total assets of ¥7.576 billion, net assets of ¥2.943 billion, a 61.15% debt-to-asset ratio, and ¥1.301 billion in cash, with no loan defaults. Revenue for 2022–2024 stood at ¥2.575 billion, ¥2.133 billion, and ¥2.483 billion, respectively.

Previously, *ST Weihai faced other risk warnings for governance lapses, including unauthorized guarantees, related-party fund misuse, frozen bank accounts, and loss of control over key subsidiaries. The company claims these issues are resolved, with no material operational risks or going-concern uncertainties.