On September 19, Juewei Food announced that it had received a prior notice of administrative penalty from the Hunan Bureau of the China Securities Regulatory Commission. The investigation into the company’s suspected violations of information disclosure regulations has been completed. The Hunan Bureau intends to order the company to make corrections, issue a warning, and impose a fine of 4 million yuan; relevant responsible persons will also be warned and fined.

Juewei Food stated that its stock will be subject to other risk warnings (ST). Trading will be suspended all day on September 22. After resuming trading on September 23, the stock’s abbreviation will change to “ST Juewei,” and the daily price fluctuation limit will be reduced to 5%.

Juewei Food indicated that its current business operations are normal. The company will make retrospective adjustments to its financial statements and strengthen internal control rectifications. After 12 months from the formal penalty decision by the regulatory authority and upon completion of financial restatements, the company can apply to have the ST status removed.

Juewei Food Fined 4 Million Yuan

On September 19, 2025, Juewei Food received a prior notice of administrative penalty from the Hunan Bureau. The investigation found the following alleged violations by Juewei Food:

From 2017 to 2021, Juewei Food failed to recognize revenue from franchise store renovation services, leading to underreported operating revenue in its annual reports. The underreported amounts accounted for 5.48%, 3.79%, 2.20%, 2.39%, and 1.64% of the publicly disclosed operating revenue for the respective years. The annual reports from 2017 to 2021 did not accurately disclose the company’s operating revenue.

The Hunan Bureau determined that Juewei Food’s actions allegedly violated relevant provisions of the Securities Law.

The Bureau intends to decide as follows: order Juewei Food to make corrections, issue a warning, and impose a fine of 4 million yuan; issue a warning and impose a fine of 2 million yuan to the relevant responsible person; issue a warning and impose a fine of 1.5 million yuan to another responsible person; issue a warning and impose a fine of 1 million yuan to a further responsible person.

Juewei Food stated that, as of the announcement date, the company’s business operations are proceeding normally. The company sincerely apologizes to investors for the impact of these matters. The company and the responsible individuals will learn from this experience, seriously absorb the lessons, actively implement rectifications, and make every effort to eliminate the impact of these matters as soon as possible. The company will strengthen training on relevant laws, regulations, normative documents, financial knowledge, and accounting standards, promote the normalization of compliance construction, continuously improve the standard of corporate governance, effectively safeguard the legitimate interests of the company and all shareholders, and promote the standardized, sustainable, and high-quality development of the company.

Under Performance Pressure: Revenue and Net Profit Both Decline in First Half of Year

Juewei Food’s interim report for 2025 shows that in the first half of the year, the company achieved operating revenue of 2.820 billion yuan, a decrease of 15.57% year-on-year; net profit was 175 million yuan, down 40.71% year-on-year; and net profit attributable to shareholders after deducting non-recurring gains and losses was 133 million yuan, a decrease of 52.60% year-on-year.

The company’s performance decline was more pronounced in the second quarter of this year, with operating revenue of 1.319 billion yuan, down 19.80% year-on-year; net profit attributable to shareholders of 55 million yuan, down 57.65% year-on-year; and net profit attributable to shareholders after deducting non-recurring gains and losses of 27 million yuan, a decrease of 78.08% year-on-year.

Juewei Food primarily relies on franchise stores to sell its prepared savory snacks, but the number of its franchise stores has been continuously decreasing. Previously, Juewei Food garnered widespread attention when it trended on social media for closing nearly a thousand stores in the first half of 2024. Since then, the company has not disclosed store counts in its 2024 annual report or its 2025 interim report. According to data from a third-party platform, as of September 16 this year, J