Core Viewpoint - The company, Jiahe Meikang (Beijing) Technology Co., Ltd., has made corrections to its financial reports for 2022 and 2023 due to accounting errors related to the timely recognition of external procurement service costs and insufficient inventory impairment provisions, resulting in a cumulative impact of -3.4463 million yuan on retained earnings as of the beginning of 2024 [1][2][3]. Financial Impact - The correction of accounting errors affected the following key financial metrics for 2022: - Operating costs increased from 350.5683 million yuan to 354.6227 million yuan, a change of 1.16% [3]. - Total profit decreased from 27.3713 million yuan to 23.3169 million yuan, a decline of 14.81% [3]. - Net profit decreased from 40.7317 million yuan to 37.2854 million yuan, a reduction of 8.46% [3]. - The parent company's net profit decreased from 68.0244 million yuan to 64.5782 million yuan, a drop of 5.07% [3]. - For 2023, the corrections led to: - Operating costs rising from 335.3165 million yuan to 343.6508 million yuan, an increase of 2.49% [4]. - Total profit shifted from 6.6771 million yuan to -4.6707 million yuan, indicating a significant loss [4]. - Net profit fell from 20.2823 million yuan to 10.0694 million yuan, a decrease of 50.35% [4]. Inventory and Impairment Adjustments - The company identified specific inventory items and their corresponding impairment adjustments, including: - Adjustments for J1 General Hospital and B1 Central People's Hospital, with amounts of 2.7237 million yuan and 2.8457 million yuan respectively [5]. - The total adjustment for inventory impairment amounted to 3.0153 million yuan [5]. Internal Control Issues - Internal control deficiencies were highlighted, particularly regarding the timely transfer of external procurement service costs, which led to misstatements in financial reporting for 2022 and 2023 [6]. - The company has committed to improving its internal controls by enhancing the management of service progress and ensuring timely recognition of costs [6][7]. Revenue and Profit Trends - In 2024, the company reported a revenue of 592 million yuan, a decrease of 14.85% year-on-year, and a net loss of 256 million yuan, marking its first loss since going public [7]. - The gross margin for the year was 35.38%, down by 15.19 percentage points compared to the previous year [7]. - Revenue from self-developed software sales decreased by 34.70% to 282 million yuan, while revenue from software development and technical support services increased by 67.26% to 236 million yuan [7]. Remedial Actions - The company has implemented a strategy of "immediate discovery, immediate rectification" to address internal control deficiencies and has established stricter regulations for confirming service progress and cost recognition [8]. - The internal control report indicates that the previously identified deficiencies have been resolved, and no additional internal control issues were found during self-assessment [8].