Core Viewpoint - The Shandong Securities Regulatory Bureau has announced regulatory measures against Shandong Digital Human Technology Co., Ltd. due to issues related to financial accounting irregularities and inadequate internal controls [1][2]. Financial Irregularities - The company exhibited non-compliance in financial accounting, particularly in the revenue recognition for the "DR Equipment System" project in 2021, which lacked sufficient basis [2][3]. - For the years 2021 to 2023, the application of total and net revenue recognition methods was inappropriate, leading to inaccurate financial data disclosures. Specifically, the reported operating revenues were overstated by 13.59 million yuan in 2021, 996,800 yuan in 2022, and understated by 13.59 million yuan in 2023. Net profits were similarly affected, with increases of 3.76 million yuan in 2021, decreases of 3.26 million yuan in 2022, and decreases of 60,500 yuan in 2023 [2][3]. Internal Control Deficiencies - The company has significant deficiencies in internal controls, including the management of client projects, bidding, accounts receivable, and accounts payable. There are also shortcomings in the execution of procurement, contract, and acceptance management systems [3]. - These deficiencies violate several regulations, including the "Measures for the Administration of Information Disclosure by Listed Companies" and the "Corporate Governance Standards for Listed Companies" [3]. Company Overview - Shandong Digital Human Technology Co., Ltd. focuses on the research and application of digital human technology, providing leading information products and services in medical education, clinical medicine, and life sciences [5]. - The company is the only publicly listed entity in the digital medical education sector in China, with its products applied in 70% of medical colleges nationwide and nearly 100 medical institutions across over 50 countries [5].

Group 1: Investor Relations Activities - The company held an earnings briefing on May 16, 2025, from 15:00 to 17:00 at the China Securities Roadshow Center [3] - Key attendees included the Chairman, Vice Chairman, and other senior executives [3] Group 2: Overseas Market Expansion - The company has successfully applied its products in over 40 countries, focusing on the Middle East and Southeast Asia [4] - Trade policy changes have not significantly impacted overall operations [4] Group 3: Financial Performance and Measures - The company recorded a credit impairment loss and asset impairment loss of 5.32 million yuan due to uncertainties in receivables from Wuhan Jinmao Engineering Technology Co., Ltd. [5] - Legal actions have been initiated to recover funds, with 5,334,725.00 yuan frozen as part of the litigation process [10] Group 4: Stock Price and Investor Confidence - The company is focused on enhancing core competitiveness and maintaining sustainable development to support stock price stability [4] - It aims to strengthen communication with investors and improve return mechanisms [4] Group 5: Project Delays and Funding - The "High-definition Digital Human R&D and Industrialization Project" has seen slow funding progress, with 25.79 million yuan (34.66%) of the planned investment not yet utilized [6] - The company plans to increase international market promotion while ensuring domestic market efforts continue [6] Group 6: Market Position and Competition - The company’s products have a market penetration rate exceeding 60% in over 500 domestic medical schools [6] - Major competitors include Anatomage and 3Dbody, with the company recognized for its innovative products [9] Group 7: Internal Control and Audit Issues - The company received a qualified audit opinion and is implementing measures to enhance internal controls and receivables management [7] - A special team has been established to manage overdue receivables and improve collection efficiency [7] Group 8: Future Industry Outlook - The company is aligned with national education strategies and aims to innovate and expand its market presence [11] - It plans to leverage digital solutions to enhance educational resource allocation and support the transition to smarter, personalized education [11]