Did 2025 Revenue After Deductions Exceed 300 Million Yuan? *ST Coconut Island Receives Regulatory Work Letter from Shanghai Stock Exchange Requiring Verification of Performance Forecast

On the evening of March 18, *ST Coconut Island (600238) announced that the company recently received a regulatory work letter from the Shanghai Stock Exchange. The letter mainly focuses on the company’s 2025 performance forecast, with key questions including: whether the annual audit firm can confirm that the company’s revenue after deducting non-core business income exceeds 300 million yuan, and whether the company can eliminate financial delisting indicators. The SSE requires the company to supplement disclosures regarding specific return details, compliance of revenue recognition, reasons for significant year-over-year revenue growth in the fourth quarter, and other matters, while warning of delisting risks. The company stated that it is organizing verification of the matters requested in the work letter and will respond in a timely manner.

Specifically, on January 31, 2026, the company disclosed its 2025 performance forecast, estimating revenue above 300 million yuan and a net loss. The annual audit firm issued a special explanation indicating that it cannot yet confirm whether the company’s revenue after deducting non-core and non-substantive income (hereinafter referred to as “deducted revenue”) exceeds 300 million yuan, or whether the company can be expected to eliminate financial delisting indicators. The audit firm is currently verifying the company’s 2025 distributor terminal sales, return situations, and management of audit reservations in 2024. If sufficient audit evidence is not obtained, the audit firm may issue a non-unqualified opinion on the 2025 financial statements and internal controls.

Regarding the company’s involvement with non-standard opinions: The SSE requires additional disclosures on specific return details in 2025, including but not limited to customer names, return amounts, product types, specifications, quantities, return times, reasons and their reasonableness, the revenue recognition year, and whether returns comply with sales contracts or involve other related sales agreements; disclosures on accounting treatment of returns (including return assets) and whether they conform to the “Enterprise Accounting Standards”; the accounts receivable balance of return customers as of the end of 2025, whether these customers have related-party relationships or other interests with the company, controlling shareholders, directors, supervisors, senior management, or related parties; whether there were other sales returns such as rebates, expense reimbursements, or disguised returns outside of returns in 2025; and whether there have been returns in previous years, with additional disclosures if so.

Regarding revenue recognition compliance: The forecast shows that the company expects to achieve 370 million yuan in revenue in 2025, with deducted revenue (excluding non-core and non-substantive income) at 350 million yuan, representing over 100% year-over-year growth compared to 2024. The SSE requests detailed disclosures distinguishing business types, including the top ten customers and suppliers, their basic information, first cooperation dates, regions, purchase or sales details, amounts and changes, payment policies and collections, gross profit margins and their changes, major customers and suppliers, and whether related-party relationships or other interests exist with the company, controlling shareholders, directors, supervisors, or related parties. It also requests disclosures on the sales performance of main products, accounts receivable calculations, post-period collections, and whether transactions have commercial substance, whether there are practices like extending receivable periods to boost sales or pushing inventory to downstream distributors, and whether revenue recognition methods and timing comply with accounting standards. Additionally, the company should assess and explain whether accounts receivable pose collection risks based on customer operations and payment conditions. Disclosures should include whether product returns occurred during or after the reporting period, with explanations based on transfer of ownership, settlement, and payment agreements, and whether revenue recognition policies align with accounting standards. The company should also disclose the deduction items from total revenue in 2025, including reasons and amounts, and whether any deductions were overlooked, while highlighting potential delisting risks.

Regarding the significant revenue increase in Q4: The forecast indicates that in Q4 2025, revenue is expected to be between 172 million and 192 million yuan, accounting for about half of the annual revenue and nearly matching the total revenue of 2024. The SSE requests the company to distinguish main products, providing details on sales prices, quantities, gross profit margins, sales policies, revenue recognition basis, and policy changes, along with a quantitative analysis of the reasons and reasonableness for the substantial year-over-year growth in Q4 revenue.

The SSE requires the company and its directors and senior executives to prepare the 2025 annual report carefully, fully highlighting risks.

*ST Coconut Island stated that it is currently verifying relevant issues based on the specific requirements of the work letter, organizing responses, and will fulfill its disclosure obligations promptly after verification is complete.

Public information shows that Hainan Coconut Island (Group) Co., Ltd. was listed on January 20, 2000. The company’s main business includes the production and sale of alcoholic beverages, beverage products, and trading.

From 2021 to 2024, the company has suffered losses for four consecutive years. Based on the 2025 performance forecast, it will record losses for five consecutive years.

*ST Coconut Island states in its performance forecast that if the company’s audited total profit, net profit, or net profit excluding non-recurring gains and losses is negative and revenue is below 300 million yuan, or if the net assets attributable to shareholders are negative as of the end of 2025, or if the audited financial statements for 2025 are issued with a qualified, reserved, or adverse opinion, or if internal control audits for 2025 are qualified or adverse, and other situations that cannot be revoked from delisting warning, the company’s stock may be delisted after the disclosure of the 2025 annual report.

(Source: Shenzhen Business Daily · Du Chuang)