Overview - Shanghai Chengdi Xiangjiang Data Technology Co., Ltd. announced corrections of prior accounting errors affecting consolidated financial statements from Q1 2023 to Q3 2024, specifically in the balance sheet and income statement, without impacting the cash flow statement [1][2]. Accounting Error Corrections - The corrections were approved by the company's board and audit committee, addressing issues such as incorrect internal transaction revenue cost offsets and inaccurate capitalization of rental assets [2][3]. - Specific errors included: 1. Misreporting in internal transaction profit and loss offsets, leading to understated operating costs and overstated inventory [2]. 2. Incorrect capitalization of renovation expenses related to the "Lingang Intelligent Technology Innovation and Entrepreneurship Park Project" [3]. 3. Delays in recognizing revenue and inventory estimates for IDC system integration projects due to inefficiencies in document handling [3]. Financial Impact of Corrections - The corrections will adjust various financial statement items, with notable changes including: - Construction in progress decreased by approximately 5.51 million RMB, resulting in a new total of approximately 1.09 billion RMB [4]. - Long-term deferred expenses increased by approximately 3.68 million RMB, leading to a new total of approximately 19.66 million RMB [4]. - Unallocated profits decreased by approximately 1.84 million RMB, resulting in a new total of approximately 323.66 million RMB [4]. Financial Performance - For the first half of 2023, the company reported a revenue of approximately 930.98 million RMB, a decline of 5.26% compared to the previous year [9]. - The net profit attributable to shareholders was reported at -1.43 million RMB, reflecting a significant decrease due to challenges in the foundation and infrastructure business segment, which saw a revenue drop of 44.11% [9][10]. - The IDC business segment, however, showed resilience with a revenue increase of 22.06% [9][10]. Key Financial Metrics - The company reported a total asset value of approximately 8.16 billion RMB, down 3.61% from the previous year [6]. - The net profit margin for the reporting period was significantly impacted by increased credit impairment losses, leading to a net profit attributable to shareholders of -16.15 million RMB, a decrease of 149.49% [7][11]. - The basic earnings per share were reported at -0.04 RMB, indicating a substantial decline compared to the previous period [7][11].