ST Panda (600599.SH) announced on October 16th that so far, Panda Financial Holdings and its subsidiaries have not directly controlled or participated in any fireworks manufacturing enterprises. In addition to Jiangxi Panda and Hunan Panda, which are originally responsible for fireworks export business, fireworks wholesale licenses are held by Jiangxi Panda and Hunan Panda, the domestic fireworks subsidiaries of other provinces and cities have completed cancellation or divestiture in the past few years. Panda Financial Holdings and its subsidiaries do not directly control or participate in fireworks wholesale companies other than Jiangxi Panda and Hunan Panda.
In 2023, fireworks export sales are affected by factors such as destocking in foreign markets, and the decline is expected to continue for some time. The uncertain factors of market liberalization in various regions of domestic sales still exist. In 2022, because some of the maturing loans in the company's microfinance business could not be recovered in time and there were major defects in the internal control of the microfinance business, the company's 2022 annual report was issued by Lianda Accounting firm (Special General Partnership) with qualified audit report and negative internal control audit report. At present, the company's micro-loan business is still in operation. As of June 30, 2023, the loan balances of the company's Xizang Panda Micro-loan Co., Ltd. and Guangzhou Panda Internet Micro-loan Co., Ltd. the total loan balance is about 330 million yuan. The risk that the above-mentioned loans cannot be recovered in time when due is not ruled out.