Core Viewpoint - Furuimei Medical has announced a rectification report following regulatory scrutiny regarding its internal control and revenue recognition practices, as it prepares for an H-share listing in Hong Kong [1][5]. Group 1: Regulatory Actions and Company Response - On December 10, 2025, Furuimei Medical received a decision from the Inner Mongolia Regulatory Bureau, mandating rectification of issues related to inadequate internal controls over overseas subsidiaries and irregular revenue recognition [3]. - The company has developed a management approach for overseas subsidiaries to enhance internal controls and risk management, clarifying management requirements in strategic planning and compliance [1][2]. - Furuimei Medical's audit department has issued audit notices to key overseas subsidiaries and engaged professional institutions for specialized internal audits to ensure compliance and effectiveness [2]. Group 2: Revenue Recognition Issues - The regulatory decision highlighted that Furuimei Medical recognized revenue prematurely, affecting financial disclosures for 2023 and 2024, with amounts of 240.89 million, 288.10 million, 567.03 million, and 134.17 million respectively [3]. - The company has implemented measures to align revenue recognition with accounting standards, focusing on control transfer and customer acceptance as criteria for financial processing [4]. Group 3: Strategic Developments - Following the regulatory scrutiny, Furuimei Medical announced a name change and plans for an H-share listing on the Hong Kong Stock Exchange to enhance its competitive position and access to international capital [5][6]. - The company has changed its stock name from "Furuimei Co., Ltd." to "Furuimei Medical" to better reflect its strategic focus and brand image [6]. Group 4: Company Overview and Performance - Furuimei Medical, established in 1998, operates in the medical sector, focusing on drug production, diagnostic equipment development, and medical services, with a global presence in over 100 countries [7]. - For the first nine months of 2025, Furuimei Medical reported revenue of 1.101 billion, a year-on-year increase of 12.37%, and a net profit attributable to shareholders of 112 million, up 9.69% [8].