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

Invest in stocks with Golden Kylin Analyst Reports—authoritative, professional, timely, comprehensive—helping you uncover potential thematic opportunities!

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

The announcement states that as of the disclosure date, the company’s 2025 annual report audit is underway. The previous year’s audit firm conducted on-site visits and inspections of the company’s Deer Tortoise Liquor sales channels. As of January 30, 2026, the sales share of this product at the terminal is low, about 20%. If subsequent inspections show that terminal sales impact the company’s revenue deductions, resulting in net revenue below 300 million yuan after deductions, the company’s stock may be delisted after the 2025 annual report is disclosed.

Currently, the audit firm is reviewing the company’s previous sales returns related to *ST Yedao and plans to revisit the main distributors of Deer Tortoise Liquor’s premium series soon. If the audit firm cannot obtain sufficient appropriate audit evidence, this may lead to the issuance of a non-unqualified opinion on the company’s 2025 financial statements or internal controls, which could result in the company’s stock being delisted after the 2025 annual report is disclosed.

On March 18, *ST Yedao announced that it recently received a regulatory letter from the Shanghai Stock Exchange [2026] 0414 regarding the company’s 2025 performance forecast. The forecast indicates that in Q4 2025, the company expects revenue of 172 million to 192 million yuan, roughly half of the total annual revenue for 2025 and close to the total revenue for 2024. The SSE requires the company to differentiate main products and provide additional disclosures on sales unit prices, quantities, gross profit margins, sales policies, revenue recognition basis, and relevant policy changes. The company should also analyze the reasons and rationality behind the significant year-over-year increase in revenue in Q4.

In response, the latest announcement on the evening of March 25 states that the company recently disclosed a “Reply to the Regulatory Letter Regarding 2025 Performance Forecast.” The announcement details the specific return and sales refund situations from 2019 to 2024. The audit firm examined the company’s refund applications, refund agreements, approval forms, and warehouse receipt confirmations. It also reviewed sales contracts and some outbound delivery documents related to revenue recognition for those years. However, for the total refund income of 5.1867 million yuan in 2019-2020, 13.8451 million yuan in 2021, and the income of 16.6573 million yuan related to debt discounting with Duchi Company in 2020-2021, the company has yet to obtain outbound shipping and transfer of title documents. The firm plans to further collect data and perform targeted audit procedures.

According to *ST Yedao’s announcement on January 30, based on preliminary calculations by the finance department, the company expects a total profit of -25 million yuan for 2025, a net profit attributable to shareholders of -29 million yuan, and a net profit after deducting non-recurring gains and losses of -23 million yuan. The forecast also projects operating revenue of 370 million yuan, with 350 million yuan after excluding non-core and non-substantive income. The net assets attributable to shareholders at year-end are expected to be 80 million yuan.

On April 30, 2025, due to the company’s net profit before and after non-recurring gains and losses being the lowest at -136 million yuan, and revenue after excluding unrelated and non-substantive income reaching 175 million yuan, the company’s stock will trigger delisting rules under the Shanghai Stock Exchange. Additionally, the internal control audit for 2024 issued a negative opinion, and the company has had negative net profits before and after non-recurring gains and losses for three consecutive years, with ongoing operational uncertainties. The stock will be subject to delisting risk warning starting May 6, 2025, and the stock abbreviation will change to “*ST Yedao.”

Public information shows that *ST Yedao’s main products include Deer Tortoise Liquor, King of the Sea Liquor, and soy sauce-flavored white liquor. The company also has a layout in coconut juice and other specialty ecological beverages. Listed in January 2000, the company was profitable for many years until 2008. Financial reports show that after its first loss in 2008, the company incurred losses in 2011, 2016, 2017, 2019, and from 2021 to 2024, with a forecasted loss for 2025. Over the past five years, losses were 60.14 million yuan, 118 million yuan, 149 million yuan, 136 million yuan, and 29 million yuan, respectively, marking five consecutive years of losses.

The latest announcement also reminds investors that the stock price has recently been volatile, closing at the daily limit on March 25. Investors are advised to pay attention to trading risks and the risk of delisting.

As of March 26, when the report was filed, *ST Yedao’s stock price was 5.19 yuan per share, down 3.53%, with a total market value of approximately 2.326 billion yuan.