In-depth Analysis Report on the Tax Underpayment and Reimbursement Incident of Zhongchao Holding (002471.SZ)

Jiangsu Zhongchao Holding Co., Ltd. (002471.SZ) recently conducted a tax self-inspection and found that it needs to pay back a total of

in taxes and late payment fees, including:

• Taxes to be reimbursed
  : 5.7236 million yuan
• Late payment fees
  : 2.5645 million yuan
• Late fee ratio
  : 30.94%[0]

The company has fully paid the amount and is not subject to administrative penalties; this expense will be recorded in the current profit and loss statement for 2025.

: The above chart shows a comprehensive analysis of the composition of the reimbursed taxes, stock price performance, key financial indicator evaluation, and multi-dimensional risk assessment.

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According to brokerage API data [0]:

Impact Dimension	Value	Analysis
Total Reimbursement	8.2881 million yuan (≈1.15 million USD)
Ratio to Market Cap	0.014%	Negligible impact
Ratio to 2024 Revenue	0.073%	Almost negligible
Impact on 2025 Net Profit	Increase loss by 1.15 million USD	The company is already in a loss state

:

• The reimbursement amount accounts for an extremely low proportion of the company’s market cap (819 million USD), only 0.014% [0]
• It also accounts for only 0.073% of the 2024 revenue (157 million USD) [0]
• However, considering the company is currently in a loss state
  (net profit margin -0.73%, ROE -2.28%), this expense will
  further expand the 2025 loss
  [0]

Based on financial analysis data [0]:

Indicator	Value	Evaluation
Profitability
P/E Ratio	-208.84x	⚠️ Severe loss
Net Profit Margin	-0.73%	⚠️ Negative profit margin
ROE	-2.28%	⚠️ Negative shareholder return
Solvency
Current Ratio	1.14	✓ Barely qualified
Quick Ratio	0.88	⚠️ Below safety line of 1.0
Free Cash Flow	-45.64 million USD	⚠️ Negative cash flow
Valuation Indicators
P/B Ratio	4.74x	⚠️ Overvalued
P/S Ratio	1.51x	Neutral

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According to the latest trading data [0]:

Time Period	Increase	Analysis
1 Day	+10.02%	Limit up
1 Month	+50.12%	🔥 Extremely strong
Year-to-Date	+133.58%	🔥 Doubled
1 Year	+122.78%	🔥 Long-term strong

:

• Stock Price: $6.26 (Closing on December 26, 2025)
• 52-Week Range: $2.41 - $6.82
• Current price is
  close to the 52-week high
  , only 8.2% below the peak [0]

• Daily Trading Volume
  : 427.67M
• Average Trading Volume
  : 129.97M
• Turnover Rate
  : Approximately
  3.3x
  the average level

This indicates a

in the market, possibly driven by short-term funds.

According to technical analysis data [0]:

Indicator	Value	Signal
Trend	Sideways Consolidation	No clear direction
MACD	No Cross	Bullish
KDJ	K=64, D=59.7, J=72.6	Bullish
RSI(14)	Overbought Risk	⚠️ Beware of correction
Beta	0.63	Lower than market volatility
Support Level	$5.07
Resistance Level	$6.45

: The stock price has entered the , and technical indicators suggest [0].

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1. Late fee ratio as high as 30.94%
   • Normally, the late fee ratio in tax disputes is around 10-20%
   • A ratio of 30.94% indicates
     the problem has existed for a long time
     , possibly spanning multiple tax years
   • Implies the company
     failed to detect or address this tax issue for a long time

2. Problem found through self-inspection
   • While reflecting the company’s initiative
   • It also indicates
     previous internal control failed to effectively prevent such issues
   • Exposes
     system loopholes in tax management

3. No administrative penalty involved
   • This is a positive factor
   • But does not rule out the possibility of further inspections by tax authorities

According to the financial analysis report [0]:

Dimension	Evaluation	Explanation
Accounting Policy	Aggressive	The company adopts relatively aggressive accounting treatments
Free Cash Flow	Negative	Continuous negative cash flow, liquidity pressure
Profit Quality	Poor	Continuous loss, weak fundamental support

:

1. Tax Management Defects
   :
   • There may be other unreported tax issues
   • It is recommended to pay attention to whether the company has other self-inspection announcements in the future

2. Financial Report Quality
   :
   • Aggressive accounting policies may affect the reliability of financial statements
   • Investors need to focus on audit opinions

3. Governance Structure Issues
   :
   • The long-term undetected tax issue reflects the failure of supervision mechanisms
   • Internal audit and risk control systems may have flaws

4. Management Capability
   :
   • Doubts about financial management capabilities
   • Need to pay attention to whether the management has specific measures to improve internal control

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Impact Factor	Evaluation
Financial Impact	★☆☆☆☆ (Minor) - The amount accounts for only 0.014% of market cap
Valuation Multiple	Affected by continuous loss, PE is negative; valuation mainly refers to P/B and P/S

:

1. Governance Discount
   :
   • Internal control issues may lead to
     valuation discount
   • Investors may require a higher risk premium

2. Downward Adjustment of Profit Expectation
   :
   • Need to bear an additional expense of 8.2881 million yuan in 2025
   • On the basis of existing losses,
     the loss will further expand

3. Damaged Market Confidence
   :
   • May affect the confidence of institutional investors
   • Long-term funds may remain on the sidelines

Indicator	Current Value	Industry Average	Evaluation
P/B Ratio	4.74x	~2-3x	⚠️ Overvalued
P/S Ratio	1.51x	~1-2x	Neutral High
P/E Ratio	Negative	-	Not comparable

: Considering the company’s and , the current P/B ratio of 4.74x is , with correction risk.

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Risk Dimension	Score (0-100)	Level	Explanation
Financial Impact Degree	20	Low Risk	Small amount, limited direct impact
Internal Control Risk Level	80	High Risk	⚠️ Systemic internal control flaws
Valuation Impact Degree	40	Medium Risk	Governance discount may emerge
Stock Speculation Degree	90	High Risk	🔥 Abnormally high turnover
Comprehensive Risk Level	65	Medium-High Risk	⚠️ Need to treat cautiously

:

• Do not chase high
  : The stock price has risen by 133%, is at a high level, and has high correction risk
• Wait for better entry point
  : It is recommended to wait for the stock price to correct to below $5.0 before considering
• Monitor internal control improvements
  : Wait for the company to announce specific rectification measures

:

• Set strict stop-loss
  : It is recommended to set a stop-loss at $5.80
• Control position
  : Do not exceed 5% of the total position
• Fast in and out
  : Not recommended for long-term holding

Need to focus on the following indicators in the next 1-3 months:

Monitoring Indicator	Warning Line	Explanation
Follow-up self-inspection announcements	-	Whether there are other reimbursement matters
2025 Q1 Financial Report	-	Whether the loss further expands
Internal control rectification measures	-	Whether the management has substantive improvements
Stock trading volume	-	Whether it continues to be high-volume at high prices
Audit Opinion	-	Type of annual report audit opinion
Regulatory Inquiry	-	Whether it receives regulatory letters

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##7. Core Conclusions

1. The
   absolute amount
   of reimbursement is small, with limited impact on the company’s finances
2. The company
   actively conducted self-inspection
   , reflecting compliance awareness
3. No administrative penalty involved
   , avoiding more serious consequences

1. Serious internal control issues
   :
   • Late fee ratio of 30.94% indicates long-standing problems
   • May expose deeper management flaws
   • Investors need to remain highly alert

2. Weak financial fundamentals
   :
   • Continuous loss, negative free cash flow
   • Poor profitability, negative ROE
   • Overvalued (P/B ratio of 4.74x)

3. High stock risk
   :
   • Short-term surge of 133%, strong speculation
   • Abnormally high turnover, possibly driven by funds
   • Technical indicators show overbought status, high correction risk

Evaluation Dimension	Score	Explanation
Event Impact	★☆☆☆☆	Minor financial impact
Internal Control Risk	★★★★☆	⚠️ Highly alert
Valuation Risk	★★★☆☆	Overvalued, correction pressure
Comprehensive Rating	★★★☆☆	Medium-High Risk, Recommend Cautious

: Although the direct financial impact of the tax reimbursement incident is limited, . Considering factors such as the company’s continuous loss, overvaluation, and short-term stock surge, . If investment is needed, it is recommended to wait for the stock price to correct to a reasonable range and closely monitor the progress of the company’s internal control improvements.

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[0] Jinling API Data (Company Profile, Real-Time Quotes, Historical Prices, Financial Analysis, Technical Analysis)