STS(SH:603322) Zhong Guo Jing Ji Wang·2025-12-12 07:53Core Viewpoint - The Guangdong Securities Regulatory Commission has imposed corrective measures on ChaoXun Communication (603322) due to inaccurate revenue recognition and internal control deficiencies, leading to misleading financial disclosures [1][5]. Group 1: Revenue Recognition Issues - ChaoXun Communication inaccurately recognized revenue from its customized computing server business using the gross method, while it should have been recognized as an agent under the net method, resulting in misleading financial reports for 2023 and the first three quarters of 2024 [2]. - The company failed to report revenue and profit accurately for the first three quarters of 2024 due to delays in submitting delivery data, violating accounting standards [3]. Group 2: Internal Control Deficiencies - The company exhibited weaknesses in customer credit management, granting excessive credit limits to clients without proper assessment, leading to lawsuits and operational disruptions [4]. - There were violations of incompatible duty separation controls, with employees providing services to certain suppliers, indicating a lack of effective internal control measures [4]. Group 3: Regulatory Actions - The Guangdong Securities Regulatory Commission has mandated corrective actions for ChaoXun Communication and issued warning letters to key executives, including the chairman and CFO, for their failure to fulfill due diligence obligations [5].