Suspected illegal information disclosure violations, Xiangyu Technology placed under investigation by CSRC! Last year it claimed normal payments, but early this year announced expected losses of hundreds of millions due to overdue customer payments

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Everyday Economic News Reporter | Wu Zepeng Everyday Economic News Editor | Bi Luming

On the evening of March 16, Xiangyou Technology (SH600476, stock price 12.82 yuan, market value 2.1 billion yuan) announced that due to suspected illegal information disclosure, the China Securities Regulatory Commission has decided to file a case against the company.

The Daily Economic News reporter found that at the end of January this year, Xiangyou Technology issued a “shockingly unexpected” large loss forecast. At that time, the company expected a net loss attributable to the parent company of 370 million to 550 million yuan for 2025, compared to a profit of 13.19 million yuan in the same period last year. The company attributed the loss to overdue payments from some customers, requiring large impairment provisions.

Notably, the overdue payments that triggered Xiangyou Technology’s performance sudden change mainly come from the company’s recent expansion into the “other industries” business. By mid-2025, the Shanghai Stock Exchange had inquired about the authenticity of this business, the qualifications of customers and suppliers, and related-party relationships.

Xiangyou Technology’s reply to the announcement showed that in its transactions with customers, there are cases where the accounts receivable formed in the same year far exceed the annual transaction amount, and some customers have only single-digit or zero insured personnel. However, at that time, Xiangyou Technology stated that it had communicated with customers and that payments would be made normally in the future.

A notice of case filing has pushed Xiangyou Technology, whose performance was already precarious, into an even more dangerous situation.

According to Xiangyou Technology’s announcement on the evening of March 16, the company recently received a “Notice of Case Filing” issued by the China Securities Regulatory Commission, due to suspected illegal information disclosure. The CSRC has decided to file a case against the company. The announcement states that currently, the company’s various operations and businesses are proceeding normally.

The Daily Economic News reporter noted that just over a month ago, Xiangyou Technology released a forecast of significant losses. At the end of January, the company announced that it expected a net profit attributable to the parent company of -550 million to -370 million yuan for 2025, a stark contrast to the profit of 13.19 million yuan in the same period last year.

Research shows that in the first three quarters of 2025, Xiangyou Technology’s operating income was only 357 million yuan, highlighting the large expected losses.

Regarding the main reasons for the forecasted losses, Xiangyou Technology explained that some customers’ overdue payments involved large transaction amounts and significant accounts receivable balances. Based on prudence, the company believes that the recoverability of related accounts receivable and long-term receivables is highly uncertain, and it expects to recognize impairment provisions of about 280 million to 460 million yuan.

Xiangyou Technology also forecasted that its net assets at the end of 2025 would be between -409 million and -229 million yuan. According to relevant regulations, if the company’s audited net assets at the end of 2025 are negative, its stock will be subject to delisting risk warning (with the stock abbreviation prefixed with “*ST”).

In fact, the issue of accounts receivable has long attracted regulatory attention. Previously, the Shanghai Stock Exchange issued an inquiry letter regarding Xiangyou Technology’s 2024 annual report, focusing on the abnormally high gross profit margin of its “other industries” business.

The Daily Economic News reporter found that from 2022 to 2024, Xiangyou Technology’s “other industries” revenue was 11 million, 166 million, and 155 million yuan respectively, with gross profit margins of 44.17%, 41.39%, and 32.64%, far exceeding the company’s traditional postal industry business (~11%).

Surprisingly, the customer and accounts receivable situation under Xiangyou Technology’s “other industries” business is noteworthy. The reporter observed that during 2023 and 2024, the company had multiple cases where the annual transaction amount with certain customers was much less than the accounts receivable amount.

For example, Tianjin Membrane Technology Environmental Protection Co., Ltd. (hereinafter referred to as Membrane Tech) is Xiangyou Technology’s largest customer under “other industries” in 2024. That year, Xiangyou Technology had transactions of 49.95 million yuan and 15.36 million yuan in projects involving “Shanghai Metro Line 8… hardware and software integration” and “Zhihui Kangxin multi-functional terminal equipment sales,” respectively, but the accounts receivable for these projects were 58.69 million yuan (within 1 year) and 459 million yuan (within 1-2 years).

In 2023, Xiangyou Technology only had one transaction with Membrane Tech—“Zhihui Kangxin multi-functional terminal equipment sales”—amounting to 36.24 million yuan, with accounts receivable of 340 million yuan at year-end, all within 1 year.

Xiangyou Technology explained that the high balance of long-term receivables from Membrane Tech is mainly because the project for Zhihui Kangxin multi-functional terminal equipment is accounted for on a net basis according to the business substance. The delay in receiving payments is mainly due to the client’s tight funds, and the company has communicated with the customer that payments will be made normally in the future. Regarding the Shanghai Metro Line 8 project, the contract stipulates installment payments, with some revenue recorded as financial expenses and amortized monthly.

As for the receivables from Membrane Tech, the company also stated in its reply that as of June 30, 2025, the total overdue long-term receivables amounted to 195 million yuan, with actual payments received of 20.97 million yuan. The delay was mainly due to the client’s payment approval process with the final owner. “After communication with the customer, payments will be made according to the contract schedule,” Xiangyou Technology said at the time.

Additionally, the reporter noted that among the customers in 2023 and 2024, many had significant transaction amounts but only single-digit or zero insured personnel.

For example, Tianjin Lideer Ecological Environment Technology Co., Ltd. was the second-largest customer under Xiangyou Technology’s “other industries” in 2024, with a transaction amount of 14.28 million yuan and accounts receivable of 16.14 million yuan (within 1 year). The company’s 2023 annual report recorded zero insured personnel. Similarly, Tianjin Furong Borun Technology Development Co., Ltd. had a transaction amount of 41.89 million yuan in 2023, with only 1 insured person recorded in its 2023 annual report. As for Membrane Tech mentioned earlier, its insured personnel in 2024 was only 14.

Cover image source: AIGC