(Yicai Global) April 27 -- Shares in Jiaoda Onlly plummeted today after the Chinese health supplement company said it will not be able to meet the Shanghai stock exchange’s deadline this week for the submission of financial reports, putting it in jeopardy of having its shares frozen, due to the discovery of accounting errors in earlier reports.

Jiaoda Onlly’s share price [SHA:600530] plunged by the exchange-imposed limit of 10 percent to CNY2.77 (USD0.40). The stock has lost 27 percent of its value so far this year.

Jiaoda Onlly uncovered accounting errors in financial reports for the years 2016 to 2021 after changing accounting firm on Jan. 30, the Shanghai-based company said yesterday, without going into any detail about the sort of mistakes.

The inaccuracies greatly impact subsequent annual results, and as a result, Jiaoda Onlly needs to re-compile the annual reports for those six years and will not be able to publish its 2022 and first-quarter 2023 earnings reports before the April 30 deadline, it said.

Jiaoda Onlly is doing an audit and has not been served with any lawsuits yet, a company staff member told Yicai Global today.

Jiaoda Onlly changed accountants to Zhongxinghua Certified Public Accountants from Wuyige Certified Public Accountants in January, the firm said earlier, citing at the time a failure to agree with Wuyige on some clauses and its auditing fee.

According to its most recent report, Jiaoda Only logged a 55.6 percent surge in net profit in the first three quarters of 2022 from a year earlier to CNY37 million (USD5.3 million), while revenue edged up 1 percent to CNY264 million (USD38.1 million).

Founded in 1997, Jiaoda Onlly mostly makes probiotics and nutritional supplements. As of September last year, Shanghai public transportation firm Dazhong Transportation Group was Jiaoda Onlly's biggest shareholder with 14.4 percent equity.

Editor: Kim Taylor