Self-inspection and tax payment exceeding 300 million yuan, ST Shuangwei's performance "bleeding," further pressure on profit margins | Quick Reading Announcement

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CaiLianShe April 3 News (Reporter Wu Weil ing ) After a prior announcement of profit loss expectations, ST Bestway (603517.SH) has again issued a disclosure regarding paying a large amount of back taxes and late fees, adding further pressure on the profit side.

ST Bestway stated in its evening announcement that, in accordance with relevant national tax laws and regulations, the company conducted a self-audit of its tax-related matters. After the self-audit, the company needs to pay additional taxes and late fees totaling RMB 342 million. The company has already paid the taxes and late fees.

ST Bestway also mentioned that this additional payment will not affect the company’s normal operations. The additional taxes and late fees will be included in the company’s profit or loss for the periods of 2025 and 2026. As for the specific impact on the company’s net profit attributable to shareholders, the final outcome will be based on the audited annual financial statements.

What’s worth noting is that, affected by demand, ST Bestway has already faced performance pressure in 2025. The company’s prior performance pre-announcement showed that it expected 2025 revenue of RMB 5.3 to 5.5 billion, a year-on-year decline of 12.09% to 15.29%; and it expected net profit attributable to shareholders to be a loss of RMB 160 million to 220 million, turning from profit to loss year on year.

ST Bestway said that, against the backdrop of the overall economy stabilizing, the consumer industry still faces pressure from structural adjustments. During the reporting period, the company’s operations faced pressure, leading to a decline in operating revenue. Production capacity has not been fully released, and multiple factors combined to drive a decline in profit. In addition, an increase in non-operating expenses and investment losses under the equity method have also had a significant impact on performance changes.

In the face of a performance low point, the company is trying to make adjustments from multiple dimensions. In an institutional research survey announcement disclosed in January this year, the company mentioned that, under the current changes in the external environment, the company’s store model, sales channels, and supply chain management system are all being adjusted in a targeted manner. At the same time, it is actively exploring new store models, conducting pilots in regions to try to make breakthroughs. The company is also continuously speeding up product innovation iterations and accelerating the schedule for bringing new products to market.

Regarding production capacity, ST Bestway said that, based on its judgment of the overall production layout, the company will further optimize and adjust its existing production capacity to better match the company’s strategic changes.