ABT Networks(SH:688168) Shang Hai Zheng Quan Bao·2025-05-23 21:36Core Viewpoint - Beijing Anbotong Technology Co., Ltd. (Anbotong) has received an inquiry letter from the Shanghai Stock Exchange regarding its 2024 annual report, prompting the company to provide clarifications on internal control issues and new business developments, particularly in the field of AI security [1][3][8]. Group 1: Internal Control and Financial Performance - Anbotong's internal control audit report highlighted issues related to the management of its subsidiary, Henan Anbotong Software Technology Co., Ltd., which has been affected by the death of its legal representative, leading to operational disruptions [3][4]. - The subsidiary has reported no revenue over the past three years, with total assets of 316,900 yuan and a net loss of 43,100 yuan in 2024, indicating a significant operational decline [4][5]. - The company has established a special team to address these internal control deficiencies and plans to complete necessary rectifications by the end of 2025 [6][7]. Group 2: New Business Developments - Anbotong has launched a new AI security business, generating revenue of 259 million yuan with a gross margin of 67.44% during the reporting period [8][9]. - The AI security business includes products such as AI security software platforms, AI hardware components, and the construction of secure computing infrastructure, indicating a strategic expansion into the AI sector [9][10][11]. - The company aims to leverage its existing technology and market position to capture growth in the AI security market, which is projected to experience significant demand due to increasing cybersecurity threats [20][21][22]. Group 3: Customer and Supplier Dynamics - The concentration of Anbotong's top five customers and suppliers has increased significantly, with the top customers accounting for 53.78% of sales and suppliers for 78.88% of purchases, indicating a shift in the customer base due to the new AI business [28][29]. - The company has maintained stable relationships with its previous top customers while integrating new clients from its AI security business, ensuring no significant customer loss [29][30]. - Anbotong's procurement strategy is diversified, allowing it to mitigate risks associated with supplier dependency and ensuring a stable supply chain [31][32]. Group 4: Financial Metrics and Expenses - Sales expenses have surged by 122.45% to 222.2 million yuan, primarily due to channel consulting fees aimed at supporting the new AI business [33][34]. - Management expenses increased by 55.78% to 108 million yuan, driven by higher employee compensation and operational costs associated with business expansion [33][36]. - The company has implemented measures to ensure the legitimacy and compliance of its sales and management expenses, with thorough auditing processes in place [38][40].