Nomura's rating is based on the completion of a self-inspection regarding tax risks, which revealed a need for CHINA LIT to make a supplementary tax payment of approximately RMB300 million. While this payment will reduce the company's profit, Nomura views it as a one-off event that won't impact the company's overall operations or profitability. However, they expect the share price to face short-term pressure as the market reacts to this earnings impact.
