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].