Core Viewpoint - The company Hengxin Dongfang has been investigated by the China Securities Regulatory Commission for suspected violations of information disclosure, following the discovery of accounting errors in its 2022 annual report [2][3]. Financial Data Summary - In the 2022 annual report, Hengxin Dongfang adjusted its revenue from 489 million yuan to 308 million yuan, a decrease of 182 million yuan. Similarly, the operating cost was adjusted from 402 million yuan to 221 million yuan, also a decrease of 182 million yuan [2][3]. - Since 2020, the company has not achieved profitability, with cumulative net losses reaching 2.074 billion yuan from 2020 to 2024 [2][10]. - The company's total assets decreased from 3.154 billion yuan at the end of 2019 to 1.834 billion yuan by the end of 2024, representing a decline of approximately 42% [12]. - The company's debt ratio increased from 17.15% at the end of 2019 to 49.79% by the first quarter of 2025 [12]. Operational Issues - The company has a history of data corrections, including adjustments to accounts receivable and share changes in its 2021 and 2022 annual reports, as well as the third-quarter report of 2023 [6]. - In July 2023, the company disclosed issues related to insufficient basis for intangible asset impairment and errors in goodwill impairment parameters, leading to significant discrepancies in reported data [6]. - The company has faced challenges in its internet video application products and services, with revenue growth slowing and increased costs leading to substantial profit declines [10]. Legal and Compliance Matters - The company, along with its chairman and CFO, received warning letters due to the ongoing issues with financial reporting and compliance [7]. - In May 2025, the company was ordered to pay 26.5 million yuan in a contract dispute, which is expected to further impact its financial performance [11].