Core Viewpoint - The company, Guangzhou Shanghang Information Technology Co., Ltd. (Shanghang Technology), is undergoing scrutiny regarding its compliance with legal regulations and the authenticity of its performance as it prepares for its initial public offering (IPO) [1][7]. Company Overview - Shanghang Technology is a one-stop service provider in the Internet Data Center (IDC) sector, offering services such as IDC comprehensive services, cloud comprehensive services, and other related services [2][6]. - The company was established in July 2010 with an initial registered capital of 3.5 million yuan, and its major shareholders include Lei Jun, the founder of Xiaomi [2][5]. Business Operations - The company's main business includes providing cabinet leasing, server hosting, bandwidth leasing, IP address leasing, and virtual private network services through self-built data centers or rented cabinets [6]. - Notable clients include well-known internet companies such as Guangzhou Jinhong and Huanyu Group, which are involved in live streaming [6]. Regulatory Compliance - The company has faced issues related to operating beyond its authorized scope and cross-border operations, with a reported revenue of 96,000 yuan from unauthorized operations in 2021, accounting for 0.02% of total revenue for that year [8][11]. - Shanghang Technology has completed rectifications for both unauthorized and cross-border operations, with the latter being resolved by May 2022 [9][11]. Financial Data - The company reported a small amount of revenue from cross-border operations in 2022, specifically 591,000 yuan, which represented 0.13% of total revenue [10]. Risk Management - The company asserts that it has established effective internal control systems to manage risks associated with unauthorized operations and has not faced any administrative penalties during the reporting period [8][11]. - Shanghang Technology has received confirmation from relevant authorities that it has no records of penalties during the reporting period, reducing the risk of administrative punishment for past violations [12].