Core Viewpoint - Tongyu Heavy Industry received a warning letter from the Shandong Securities Regulatory Bureau due to accounting errors related to inventory valuation, which led to the correction of financial reports for 2022 and 2023 [1][2] Group 1: Financial Reporting Issues - The warning letter highlighted significant problems in financial information disclosure, specifically due to mismanagement and incorrect inventory accounting methods, resulting in discrepancies between reported and actual inventory [2] - The company had to revise its annual reports for 2022 and 2023, which included reductions in inventory and retained earnings [2] - The actions taken by the company violated the regulations of the "Management Measures for Information Disclosure of Listed Companies," affecting the authenticity and accuracy of financial reports [2] Group 2: Accountability and Regulatory Actions - Seven key personnel, including the chairman, general manager, and former financial officers, were held accountable for the violations, and their actions will be recorded in the securities market integrity archives [2] - The Shandong Securities Regulatory Bureau decided to issue a warning letter to both the company and the responsible executives as a regulatory measure [2] Group 3: Company Operations and Management - Despite the regulatory actions, the company stated that its normal production and operational activities would not be adversely affected [4] - The company acknowledged the need to improve internal management controls and governance structures as it expands, emphasizing the importance of effective management in mitigating operational risks [3] - The board plans to reorganize and adjust the company's structure to enhance management efficiency and drive internal growth [3]