SHCD(SH:603887) Zheng Quan Zhi Xing·2025-07-14 16:24Core Viewpoint - Shanghai Chengdi Xiangjiang Data Technology Co., Ltd. received an inquiry letter from the Shanghai Stock Exchange regarding its 2024 annual report, focusing on accounting errors and non-standard audit opinions [1][2]. Group 1: Accounting Errors and Corrections - The company disclosed prior accounting errors related to internal transaction income and cost offsets, inaccurate capitalization of rental assets, and cross-period estimates for IDC system integration business income [2][3]. - The errors led to misstatements in the consolidated financial statements, affecting the accuracy of the financial reports [2][3]. - The company adopted a retrospective restatement method to correct these errors, which were approved by the board on April 29, 2025 [4]. Group 2: Financial Impact of Corrections - The adjustments for the 2023 consolidated financial statements included changes in accounts receivable, inventory, and other assets, with total adjustments impacting various financial statement items [4][5]. - For the 2023 annual report, the adjustments resulted in an increase in operating income from 2.37 billion to 2.43 billion and an increase in operating costs from 1.91 billion to 2.02 billion [4][5]. - The corrections did not affect the cash flow statement for 2023 and 2024, nor did they require adjustments to the parent company's financial statements [4][5]. Group 3: Main Business Performance - The company reported a revenue of 1.62 billion yuan for the reporting period, a decrease of 33.36% year-on-year, with the IDC business contributing 1.59 billion yuan, down 23.51% [13][17]. - The decline in revenue was attributed to a sluggish real estate market affecting traditional business segments and a strategic shift towards the IDC system integration sector [17]. - The company is focusing on reducing reliance on traditional foundation business and reallocating resources to more promising areas like IDC system integration [17]. Group 4: Client and Supplier Information - The company was requested to disclose detailed information about its top ten clients and suppliers, including transaction backgrounds, contract details, and performance status [13][14]. - The inquiry emphasized the need to explain the reasons for the revenue decline and the rationale behind the lack of impairment for goodwill despite the drop in IDC business revenue [13][14]. Group 5: Internal Control and Audit Procedures - The company has established a collaborative management system for online and offline project tracking, although some execution issues were identified in the collection and processing of original documents [7][8]. - The audit procedures included evaluating internal controls, interviewing financial personnel, and reviewing documentation related to the accounting errors [7][8]. - The auditors expressed concerns about the lack of sufficient evidence regarding the IDC system integration income and inventory estimates, leading to a non-standard audit opinion [10][12].