Zheng Quan Zhi Xing·2025-08-27 10:29Core Viewpoint - The report outlines the ongoing supervision and compliance issues faced by Chengdu Sicore Microelectronics Co., Ltd. (Sicore) following a regulatory decision by the China Securities Regulatory Commission (CSRC) regarding improper revenue recognition in 2022, leading to administrative measures and a formal investigation [1][2][3]. Summary by Sections Continuous Supervision Overview - The report details the supervisory responsibilities of China Galaxy Securities as the sponsor for Sicore's IPO on the Sci-Tech Innovation Board, including checks on corporate governance, financial management, and compliance with fundraising regulations [1][2]. Regulatory Actions - Sicore was found to have recognized revenue of 9.9604 million yuan without meeting the necessary conditions, resulting in an overstatement of revenue and profit for 2022. The CSRC issued a corrective order and warned key executives [1][2][3]. Measures Taken - Following the regulatory decision, Sicore has taken corrective actions, including submitting a rectification report and adjusting financial statements for 2022. The company is enhancing internal management and compliance training for its executives [2][3]. Major Risk Factors - The company faces several risks, including potential performance decline due to increased operational costs and market competition, particularly in the military electronics sector. There are concerns about maintaining core technological competencies and the impact of regulatory compliance on operations [4][5][6][7]. Financial Performance - For the first half of 2025, Sicore reported a revenue of 100.9972 million yuan, an increase of 81.67% compared to the same period in 2024. However, the net profit was 3.5842 million yuan, indicating a significant recovery from a loss in the previous year [9][10]. Core Competitiveness - Sicore's competitive edge lies in its advanced reliability testing technologies and a professional management team with extensive experience in military electronics. The company has established a strong market presence across various regions in China [10][11][12]. R&D and Compliance - The company has invested 10.64% of its revenue in R&D, focusing on enhancing its testing capabilities. As of June 2025, Sicore holds numerous patents and software copyrights, reflecting its commitment to innovation [13][14]. Shareholding Structure - As of June 30, 2025, the controlling shareholder, Jian Shui Quan Jun Enterprise Management Center, holds 54.91% of Sicore's shares, with no shares pledged or frozen, indicating a stable ownership structure [14][15].