Core Viewpoint - Digital Human, a listed company on the Beijing Stock Exchange, has seen a significant increase in stock price following the release of its Q3 2025 report, highlighting strong revenue and profit growth [1] Financial Performance - For the first three quarters of the year, Digital Human achieved operating revenue of 63.87 million yuan, a year-on-year increase of 124.45%, and a net profit attributable to shareholders of 1.3142 million yuan, up 117.83% [1] - In Q3 alone, the company reported operating revenue of 34.1337 million yuan, a year-on-year growth of 105.54%, and a net profit of 5.2108 million yuan, marking a substantial year-on-year increase of 580.83% [1] - The basic earnings per share for the company stood at 0.01 yuan [1] - As of September 30, the contract liabilities amounted to 24.12 million yuan, reflecting a 78% increase from the beginning of the year, indicating strong future revenue potential [4] - The net cash flow from operating activities for the first three quarters was 12.9761 million yuan, representing a significant year-on-year growth of 353.25% [4] Industry Position and Innovation - Digital Human is the only listed company in the domestic digital medical education sector and is recognized as a national high-tech enterprise and a "little giant" enterprise [2] - The company focuses on the research and application of digital human technology, providing leading information products and services in medical education, clinical medicine, and life sciences [2] - Digital Human has established various innovation platforms, including the Shandong Provincial China Digital Human Engineering Technology Research Center, ensuring its technological advancement in the industry [2] - The company has developed high-precision human body data and virtual reality technology, creating controllable virtual human models and 3D printed human specimens, with international leading precision in imaging [2] Market Reach - Digital Human has built a comprehensive marketing and service network across the country, with product applications in 70% of medical schools and nearly 100 medical institutions, as well as in over 50 countries and regions [3] - The company has demonstrated a strong market demand, as evidenced by a 33% increase in prepaid expenses and a 93% growth in inventory [4]

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].