SHCD(SH:603887) Sou Hu Cai Jing·2025-09-15 07:29Core Viewpoint - Shanghai Chengdi Xiangjiang Data Technology Co., Ltd. has been issued a warning letter by the Shanghai Securities Regulatory Bureau due to serious distortions in financial data disclosure, involving multiple senior executives including the chairman and president, Xie Xiaodong, and the financial director, Yang Zhe [1][4] Financial Reporting Issues - The company has reported inaccurate financial data in its 2023 annual report and multiple quarterly reports for 2024, leading to a warning from the regulatory authority [1][4] - Errors in internal transaction offsets, improper asset amortization, and cross-period revenue recognition for significant projects have been identified as key issues [2][3] Internal Control Failures - The company exhibited internal control weaknesses, as evidenced by continuous financial reporting errors over seven consecutive quarters [1][2] - Specific issues included incorrect preparation of offsetting entries for internal transactions and incomplete internal transaction offsets [3] Accounting Errors - Chengdi Xiangjiang misclassified a right-of-use asset during the renovation period, leading to incorrect financial reporting [3] - The company also failed to expense the amortization of the right-of-use asset during non-renovation periods, resulting in further inaccuracies in financial disclosures [3] Revenue Recognition Problems - Revenue recognition for several major projects, including the data center projects for China Mobile and the National Advanced Computing Industry Innovation Center, was incorrectly reported across periods [2][3] Regulatory Actions - The Shanghai Securities Regulatory Bureau has mandated the company to correct the accounting errors by June 30, 2025, and has issued a warning letter as a regulatory measure [4] - The three executives involved have been held accountable for the violations during their tenure [5] Company Background - Chengdi Xiangjiang was established in 1997 and listed on the A-share main board in 2016, providing a full range of services in the IDC industry [5] - The company has incurred losses of nearly 1 billion yuan over the past two years and faces challenges in transferring ownership to state-owned enterprises [5]