Core Viewpoint - The law firm Zhejiang Tiance (Shenzhen) has conducted a special legal review for Shenzhen Zengtong Electronics Co., Ltd. regarding the inquiry letter about the 2024 annual report, confirming that the company has rectified its internal control deficiencies and is in compliance with relevant regulations [1][2][3]. Group 1: Internal Control and Compliance - The company received a negative internal control audit report from Zhongqin Wanxin for the year 2023, leading to a risk warning on its stock from May 6, 2024 [3][4]. - The company has implemented corrective measures, including compliance training and strengthening internal control systems to prevent fund occupation and financial misconduct [5][6]. - As of the date of the review, the company has completed the necessary rectifications and its internal controls are deemed effective, meeting the conditions to apply for the removal of the risk warning [9][10]. Group 2: Financial Performance and Audit Findings - The company reported a net profit of -365.1 million yuan for the year 2024, with a total unallocated profit of -782.8 million yuan [25][30]. - The audit report for 2024 provided by Zhongqin Wanxin indicated that the company maintained effective internal controls over financial reporting as of December 31, 2024 [14][23]. - The company has addressed previous financial misstatements from 2017 and 2019 by restating its financial reports, which aligns with the requirements set forth by the regulatory authorities [10][24]. Group 3: Regulatory Compliance and Risk Warnings - The company is currently under continued risk warnings due to the timing of the administrative penalty, which has not yet reached the twelve-month threshold for removal [25][30]. - The review confirmed that the company does not meet any conditions for mandatory delisting or additional risk warnings as per the stock listing rules [26][30]. - The company has not encountered any new circumstances that would trigger additional risk warnings, maintaining compliance with the stock exchange regulations [20][30].