April 7 Investment Warning: Two companies will be subject to ST due to false records in their annual reports

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Guide: Caixin News Service April 7; the investment “risk-buster” for avoiding trouble. Recently, the following potential risk events have been reported in the A-share market and overseas markets.

In terms of domestic economic information, this includes:

1）Data monitored by the National Bureau of Statistics shows that in the last half of March, the hog prices fell 5.9% month over month;

2）Fighting in the Middle East has ignited the textile industry’s core raw materials; some curtain companies say curtain prices may be going up;

As for companies, key points to watch include:

1）Shandong Zhanggu Machinery (Group): because its 2024 annual report contains false records, it will be subject to other risk warnings; the stock abbreviation will be changed to “ST Zhanggu”;

2）Hengxin Orient: because its 2022 annual report contains false records, it will be subject to other risk warnings; the stock abbreviation will be changed to “ST Hengxin”;

Overseas markets: key points to watch include:

1）Trump said that Iran could be completely crushed within a single night—perhaps that would be the night of the 7th;

2）A senior adviser to Iran’s Supreme Leader warned the United States that it may block the Strait of Hormuz as a form of retaliation.

Economic Information

1、National Bureau of Statistics April 4: according to monitoring of market prices for 50 key production materials across nine categories in the national circulation sector, compared with mid-March 2026, in the last half of March, prices of 31 products rose, 16 fell, and 3 remained stable. Among them, hogs (external three-yuan) prices were 9.5 yuan/kg, down 5.9% month over month.

2、Red Fruit short drama official account April 6 released the “Announcement on Continued Remediation of Violations in AI Short Drama Content”: In the first quarter of this year, the platform has cumulatively removed 1,718 episodes of manhua (comic series) that violated the platform’s governance rules. In response to the frequent violations involving AI short drama content recently, the platform has launched special centralized remediation. To date, it has completed a full review of 15k works and, in accordance with regulations, dealt with 670 non-compliant works.

3、For textile companies, chemical fiber is a basic raw material for producing fabrics and accounts for more than 60% of total fabric costs. Cost pressure caused by rising crude oil prices will be transmitted step by step down the textile industry chain to downstream consumers. Lou Qiaoping, who operates a sun-protective clothing business at Yiwu International Trade City, said the curtain fabric used in the shop has a nylon content of more than 85%. While raw material prices are rising recently, they are also facing a shortage of supplies—many upstream factories cannot fully deliver products for some orders. The merchants said that to maintain their customer base, they are also negotiating with downstream customers: for orders already produced, they will ship at the original price, and for future new orders they will flexibly adjust wholesale prices according to market conditions. In Haining, Zhejiang, a curtain company said that currently all product raw materials are chemical fibers. The company is still using fabrics prepared in advance, but once its inventory is used up, the cost of repurchasing will increase, and it expects products to rise in price starting in April.

Company Warnings

1、Shandong Zhanggu: Because its 2024 annual report contains false records, it will be subject to other risk warnings; the stock abbreviation will be changed to “ST Zhanggu”.

2、Hengxin Orient: Because its 2022 annual report contains false records, it will be subject to other risk warnings; the stock abbreviation will be changed to “ST Hengxin”.

3、Kolin Electric: Shareholders and directors plan to reduce their holdings by a combined amount of no more than 3% of the company’s shares.

4、Molds Technology: The controlling shareholder plans to reduce their holdings by a combined amount of no more than 3% of the shares.

5、Songzhi Co., Ltd.: Directors and senior executives plan to reduce their holdings by a combined amount of no more than 0.0598% of the company’s shares.

6、Aileda: Senior management Wei Xuesong plans to reduce holdings by 49.1k shares.

7、Zhaobidding Co., Ltd.: Shareholders including 618 Development plan to reduce holdings by a combined amount of no more than 0.13% of the company’s shares.

8、Mingxin Xuteng: Shareholder Mingxin Assets plans to reduce holdings by no more than 2.00% of the company’s shares.

9、Interstate Oil & Gas: A shareholder, Haikou Dongduo, is suspected of transferring shares during a restricted transfer period and has received a prior notice of administrative penalty.

10、Hangjin Technology: Filed by the CSRC for an investigation because of alleged violations in disclosure and information reporting.

11、Zhunyou Shares: Downgraded its 2025 performance forecast; it expects after deductions for operating revenue of 269.5 million-294.5 million yuan. The company’s stock trading may be subject to risk warning for delisting.

12、*ST Yanshi: The company’s market capitalization has fallen below 500 million yuan for the first time, indicating the risk of delisting and termination of listing.

13、*ST Guandian: Filed by the CSRC for an investigation because of alleged violations in disclosure and information reporting.

14、Xinghui Ring Materials: The company’s main raw material for polystyrene products is styrene. Significant fluctuations in the raw material prices may bring substantial management difficulty for the company.

15、A 20CM limit-up—Dekeli: In the company’s financial budgets and performance planning over the past two to three years, OCS products have not been included in expectations.

16、EC Data: Filed by the CSRC for an investigation because of alleged violations in information disclosure. A warning letter was issued because the subsidiary’s satellite internet business disclosure was inaccurate.

17、*ST Jinglun: Received a prior notice of the Shanghai Stock Exchange’s proposal to terminate the listing of the company’s shares.

18、Xianhe Shares: One of the actual controllers, Wang Minglong, has been filed for investigation because of alleged short-term trading.

19、Guangshengtang: Its hepatitis B innovative drug is still in the R&D stage.

20、Chuangjinuo: In Q1, net profit year over year is expected to decline by 33.35%-47.24%.

21、Feilong Shares: In Q1, net profit year over year is expected to decline by 42.92%-59.23%.

22、Jindi Group: Net loss for 2025 of 15k yuan.

23、Bensteel Plate: Net loss for 2025 of 49.1k yuan.

24、JAC Motors: Net profit loss for 2025 of 13.28B yuan.

25、Shilian Holdings: Net loss for 2025 of 650 million yuan.

26、Maoshun Power: Net loss for 2025 of 234 million yuan, turning from profit to loss year over year.

27、Hongchang Technology: Net profit in 2025 fell 37.41% year over year; proposes cash dividend of 0.28 yuan per 10 shares.

Overseas Warnings

1、U.S. President Trump holds a press conference regarding the conflict with Iran. Trump said that the entire country of Iran could be completely crushed in a single night—even that night, perhaps would be the evening of April 7. The U.S. military “has already drawn up a plan: once it is launched, within the four hours from 8:00 p.m. to midnight on the evening of April 7 U.S. Eastern Time, every bridge inside Iran would be completely destroyed, every power plant inside Iran would be completely paralyzed, engulfed in fire and explosions—after that, it would no longer be usable, and everything would be completely reduced to rubble. And the entire process would only take 4 hours.”

2、The Israel Defense Forces said in a statement on the 6th that on that day it carried out an airstrike on a large petrochemical integrated facility in the Asalouyeh area in southern Iran. The statement said the facility is Iran’s largest petrochemical complex. The statement said that the IDF had struck two major petrochemical complexes in Iran, causing more than 85% of Iran’s export capability for petrochemical products to be severely damaged. The statement said that the facilities related to Asalouyeh include key infrastructure used for producing explosive materials and ballistic missile propellants, among other materials, and are an important raw-material supply hub for Iran’s missile industry. The IDF said it would continue to increase strikes against core military production infrastructure in Iran, aiming to cause “broad and continuous destruction” to its military manufacturing capability.

An Iraqi security department source said that on the 4th local time, an oil storage facility owned by a foreign entity inside a logistics center in Basra Governorate in southern Iraq was hit by an Iranian drone attack, which sparked a fire. There is currently no information about casualties. This source did not say which country the attacked oil storage facility belongs to. It is understood that this logistics center is an important concentrated area for industrial and oil facilities in Iraq, and also the core hub where many foreign oil companies operate important oil fields in Iraq, including the Rumaila oil field. In addition, another source from the Iraqi energy department said that the Iranian drone also hit the northern Rumaila oil field on the same day. Iran has not yet responded.

3、On April 5, an external affairs adviser to Iran’s Supreme Leader, Ali Velayati, warned the United States that if it “makes the same mistake again,” the Iran-led resistance front will take blocking the Strait of Hormuz as a countermeasure. Velayati posted on social media that day: “Today, the unified command of the resistance front regards the Strait of Hormuz the same way as the Strait of Hormuz. If the White House commits another stupid mistake, it will soon realize that with just one move, global energy and trade flows will be cut off.” The Strait of Hormuz connects the Red Sea and the Gulf of Aden and is a crucial passageway linking the Atlantic, the Mediterranean, and the Indian Ocean. This strait is under the control of Yemen’s Houthi armed forces. Some media believe that Velayati’s post is a response to the threats that U.S. President Trump issued to Iran that day. On April 5, Trump posted again urging Iran to open the Strait of Hormuz and threatened that “April 7 will be Iran’s power-plant day and bridge day,” implying a major bombing of Iran’s power plants and bridges.

4、Saudi Arabia has raised the price of its benchmark crude oil grade sold to Asia to a record high. This move comes as Iran has nearly shut down the Strait of Hormuz and regional energy flows are obstructed, and with the duration of the conflict still undecided, it is bringing violent volatility to the market. A price list shows that Saudi Aramco will raise the price of its flagship product—Arab Light crude oil—for sales to Asian refiners in May to a premium of $19.50 per barrel versus the benchmark, which is below traders and refiners’ expectations of a $40 premium per barrel.

5、Morgan Stanley, in a research report, said the global liquefied natural gas (LNG) market has entered an extremely tight stage, with about 20% of supply still offline. “In-transit inventory” shipped from Qatar before the conflict has basically been delivered, which means the April spot market will be even tighter. Morgan Stanley said that the global LNG market is expected to have a supply gap of about 15 million tonnes (about 4%) in 2026. Morgan Stanley is bullish on LNG prices for 2026, significantly higher than the forward curve’s forecast. Analysts expect the JKM price in Q3 2026 to reach $30/mmbtu, and that prices in Q4 will rise further to $32.50/mmbtu.

6、In the first quarter of 2026, 40 companies listed on the Hong Kong Stock Exchange raised nearly 110 billion Hong Kong dollars in IPO funds, up 489% year over year. In terms of the number of sponsor firms, the top three investment banks’ rankings remain stable, continuing the seating arrangements from 2025. Among them, China International Capital Corporation (CICC) Hong Kong continues to lead with 15 IPO sponsor deals, ranking first; CITIC Securities (CITIC Hong Kong combined with CITIC Lien and Lyon’s calculation) and Huatai Financial Holdings (Hong Kong) each sponsored 7 deals and tied for second; UBS, Morgan Stanley, Guotai Junan, and CMB Securities (Hong Kong), among others, each sponsored 4 deals and tied for third. (Securities Times)

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