Core Viewpoint - Chengdu Zongheng Automation Technology Co., Ltd. disclosed its regulatory history over the past five years, indicating no penalties but several warnings and regulatory measures from the China Securities Regulatory Commission (CSRC) and the Shanghai Stock Exchange (SSE) [1] Regulatory Measures and Rectification - The CSRC issued two warning letters and two regulatory concern letters, while the SSE provided two oral warnings and one regulatory warning, all related to issues such as improper revenue recognition and inadequate disclosure of fundraising management [2][3] - Specific issues included the recognition of revenue of 14.64 million yuan in the wrong period, failure to capitalize certain R&D expenses amounting to 1.49 million yuan, and inaccuracies in the disclosure of fundraising replacement timing [2] - The company, along with its chairman and financial director, received warnings and has submitted rectification reports, committing to enhance legal compliance and internal controls [2] Additional Regulatory Concerns - Further concerns raised by the CSRC included lack of meeting records, non-compliance in account usage and accounting vouchers, and insufficient assessment of inventory net realizable value [3] - The company has completed self-inspection and rectification, reporting the results to the regulatory body [3] Recent Warnings - In late 2024, the CSRC and SSE issued warnings regarding insufficient provision for bad debts amounting to 2.226 million yuan and premature revenue recognition of 2.076 million yuan [4] - The company has implemented corrective measures and submitted a report following these warnings [4] Information Disclosure Issues - The SSE issued a warning in August 2025 due to the company's repeated requests for extensions in responding to inquiries about its 2023 annual report, violating timely disclosure regulations [5] - The company has conducted a self-inspection and implemented corrective actions in response to these issues [5]

General Principles - The purpose of the fundraising management system is to standardize the management of funds raised by the company, improve the efficiency of fund usage, and protect the legitimate rights and interests of investors [1][2] - The funds raised refer to the capital obtained through the issuance of securities to unspecified objects, excluding funds raised for equity incentive plans [1] Fund Storage - The company must store the raised funds in a special account approved by the board of directors, and these funds cannot be used for other purposes [2][3] - A tripartite supervision agreement must be signed with the sponsor institution and the commercial bank within one month of the funds being received [2][3] Fund Usage - The company is required to disclose specific arrangements for the use of raised funds, focusing on technology innovation [4][5] - Funds must be used according to the planned usage stated in the issuance application documents, and any significant changes must be announced promptly [5][6] - The company can replace self-raised funds with raised funds within six months after the funds are received [6][7] Changes in Fund Usage - Any changes in the use of raised funds must be approved by the board of directors and the shareholders' meeting, with clear disclosure of the reasons and new project details [9][10] - The company must ensure that any new investment projects have good market prospects and profitability [10][11] Management and Supervision - The company must provide accurate and complete disclosures regarding the actual use of raised funds [12][13] - The sponsor institution or independent financial advisor is responsible for ongoing supervision and must report any irregularities to regulatory authorities [12][13]