Core Viewpoint - The company, Wanxiang Qianchao, is under scrutiny due to a warning letter from the Zhejiang Regulatory Bureau regarding its accounting practices, particularly concerning prepaid equipment and construction projects, raising concerns about potential long-term unfulfilled equipment orders and their impact on financial statements [1][2][3] Group 1: Prepaid Equipment Concerns - The company received a shareholder inquiry regarding the large balance of prepaid equipment as of the end of 2023, with some equipment reportedly manufactured by the end of 2018 but not yet delivered [1] - The inquiry questions whether there are long-standing unfulfilled equipment orders causing the prepaid amounts to remain on the books, and if the company has pursued repayment for overdue equipment [1][2] Group 2: Construction Projects and Audit Issues - The warning letter highlighted inadequate audit procedures related to construction projects, specifically mentioning that some equipment has been on the books for an extended period without verification of acceptance, which could indicate they are already in use [2][3] - The company clarified that the delayed acceptance of three production lines was due to the equipment not meeting contractual technical specifications, with acceptance expected to be completed by early 2025 [3]