Core Points - The Ministry of Finance of the People's Republic of China has issued an administrative penalty decision against Tianrui Group Co., Ltd. for four major accounting issues [1][5] - The company has been found to have inflated its 2023 profits by a total of 406,022,449.90 yuan due to improper adjustments in credit impairment losses [1] - Tianrui Group failed to assess expected credit losses on litigated receivables amounting to 928,597,837.00 yuan, resulting in an underestimation of bad debt provisions and an inflated profit of 46,429,891.85 yuan [2] - The company improperly offset unexpired bank acceptance bills, leading to an understatement of both assets and liabilities by 2,735,472,700.00 yuan [2] - There was also an under-provisioning of depreciation and amortization amounting to 6,207,228.21 yuan due to inadequate accounting for fixed and intangible assets acquired through mergers [3] Summary by Sections Accounting Issues - Tianrui Group adjusted credit impairment losses without proper evaluation, leading to a profit inflation of 406,022,449.90 yuan for 2023 [1] - The company did not assess expected credit losses on litigated receivables, resulting in a profit inflation of 46,429,891.85 yuan [2] - The improper offsetting of unexpired bank acceptance bills caused an understatement of assets and liabilities by 2,735,472,700.00 yuan [2] - There was a failure to adequately account for depreciation and amortization, leading to an under-provisioning of 6,207,228.21 yuan [3] Regulatory Compliance - The actions of Tianrui Group violated multiple provisions of the revised Accounting Law of the People's Republic of China and relevant accounting standards [4] - The Ministry of Finance imposed a fine of 50,000 yuan on the company as a result of these violations [5] Company Profile - Tianrui Group is a diversified enterprise group involved in green building materials, smart manufacturing, internet technology, and cultural tourism, ranking 380th among China's top 500 enterprises and 195th among China's top 500 manufacturing companies [6]