Faslon (605318) Faces Over 4 Million Yuan in Back Taxes, Struggling to Break Through in Industry Winter!

(Source: Shuaicaihua Tax)

The home building materials industry in 2025 is destined to be a year of continued pressure. Foshan Lion (605318)’s performance and the sudden tax supplement announcement reflect the survival challenges faced by small and medium-sized building material companies during the industry downturn.

On the evening of March 18, Foshan Lion issued a tax payment supplement notice. According to the “Tax Administrative Penalty Decision,” the company needs to pay a total of 4.1449 million yuan in taxes, fines, and late fees. This amount will directly reduce the net profit for 2025, adding pressure to the company’s previously forecasted losses.

As early as January 22, Foshan Lion announced a forecasted loss for 2025, expecting net profit attributable to shareholders of the listed company to be between -6 million and -4 million yuan, with non-recurring net profit between -9.95 million and -7.95 million yuan.

Although the loss has narrowed significantly compared to the -28.9873 million yuan net profit attributable to shareholders in 2024, demonstrating the company’s cost reduction and efficiency improvement efforts, it still cannot escape the loss situation. The core reason remains the ongoing downward trend in the real estate industry.

As an assembled space product company, Foshan Lion’s downstream market has entered a stock era, and the decline in main business revenue has become the primary reason for the performance loss.

This tax supplement incident will undoubtedly worsen the company’s financial performance in 2025.

The announcement shows that the company needs to pay 3.1112 million yuan in taxes, 51,500 yuan in fines, and 9.822 million yuan in late fees. Currently, the taxes and late fees have been paid in full. This expenditure will be included in the 2025 current period profit and loss, expected to reduce net profit by 4.1449 million yuan.

It is worth noting that the company believes this matter does not constitute an accounting error from previous periods, does not involve retrospective adjustments to financial data, and does not affect normal operations.

From the overall financial situation, Foshan Lion’s performance in the first three quarters of 2025 shows that the company achieved profit in single quarters, with operating cash flow increasing by 619.52%. Accounts receivable and inventory levels both declined, and sales and management expenses continued to decrease. The results of cost reduction, efficiency improvement, and cash flow management are significant, allowing the company to significantly narrow losses amid the industry downturn.

Currently, the home building materials industry is still affected by deep adjustments in the real estate sector, with increasing competition in the stock market. Foshan Lion has achieved a narrowing of losses through strategic optimization during this industry downturn, which is no easy feat.

For Foshan Lion, how to explore new growth points in the stock market and continue to consolidate cost reduction and efficiency gains will be key to breakthrough development in 2026. Meanwhile, the entire home building materials industry is still waiting for the dual benefits of real estate recovery and the release of stock demand, aiming for a true rebound moment.