Core Viewpoint - The company has disclosed accounting errors related to internal transactions, asset capitalization, and revenue recognition, leading to a non-standard audit opinion for the 2024 financial report [2][10]. Group 1: Accounting Errors - The company reported errors in internal transaction income and cost offsets, leading to understated costs and overstated inventory [3][4]. - Errors in the capitalization of rental assets were identified, where renovation costs were incorrectly classified [4][5]. - Issues in revenue recognition for IDC system integration projects were noted, primarily due to delays in collecting and processing original documents [5][6]. Group 2: Financial Impact - The adjustments for the accounting errors resulted in changes to the 2023 consolidated financial statements, including an increase in revenue from 2.37 billion to 2.43 billion and an increase in costs from 1.91 billion to 2.02 billion [6][10]. - The company’s 2024 annual report showed a revenue decline of 33.36%, with IDC business revenue decreasing by 23.51% [10][11]. Group 3: Audit Opinion - The audit firm issued a qualified opinion due to insufficient evidence to confirm the accuracy of the accounting error corrections, particularly regarding the IDC system integration revenue and inventory estimates [9][10]. - The audit procedures included evaluating internal controls, interviewing financial personnel, and reviewing relevant documentation, but sufficient evidence was not obtained [8][9]. Group 4: Client and Supplier Information - The company is required to disclose detailed information about its top ten clients and suppliers, including transaction backgrounds and performance metrics, to explain the revenue decline [10][11].

Core Viewpoint - Shanghai Chengdi Xiangjiang Data Technology Co., Ltd. received an inquiry letter from the Shanghai Stock Exchange regarding its 2024 annual report, focusing on accounting errors and non-standard audit opinions [1][2]. Group 1: Accounting Errors and Corrections - The company disclosed prior accounting errors related to internal transaction income and cost offsets, inaccurate capitalization of rental assets, and cross-period estimates for IDC system integration business income [2][3]. - The errors led to misstatements in the consolidated financial statements, affecting the accuracy of the financial reports [2][3]. - The company adopted a retrospective restatement method to correct these errors, which were approved by the board on April 29, 2025 [4]. Group 2: Financial Impact of Corrections - The adjustments for the 2023 consolidated financial statements included changes in accounts receivable, inventory, and other assets, with total adjustments impacting various financial statement items [4][5]. - For the 2023 annual report, the adjustments resulted in an increase in operating income from 2.37 billion to 2.43 billion and an increase in operating costs from 1.91 billion to 2.02 billion [4][5]. - The corrections did not affect the cash flow statement for 2023 and 2024, nor did they require adjustments to the parent company's financial statements [4][5]. Group 3: Main Business Performance - The company reported a revenue of 1.62 billion yuan for the reporting period, a decrease of 33.36% year-on-year, with the IDC business contributing 1.59 billion yuan, down 23.51% [13][17]. - The decline in revenue was attributed to a sluggish real estate market affecting traditional business segments and a strategic shift towards the IDC system integration sector [17]. - The company is focusing on reducing reliance on traditional foundation business and reallocating resources to more promising areas like IDC system integration [17]. Group 4: Client and Supplier Information - The company was requested to disclose detailed information about its top ten clients and suppliers, including transaction backgrounds, contract details, and performance status [13][14]. - The inquiry emphasized the need to explain the reasons for the revenue decline and the rationale behind the lack of impairment for goodwill despite the drop in IDC business revenue [13][14]. Group 5: Internal Control and Audit Procedures - The company has established a collaborative management system for online and offline project tracking, although some execution issues were identified in the collection and processing of original documents [7][8]. - The audit procedures included evaluating internal controls, interviewing financial personnel, and reviewing documentation related to the accounting errors [7][8]. - The auditors expressed concerns about the lack of sufficient evidence regarding the IDC system integration income and inventory estimates, leading to a non-standard audit opinion [10][12].

Overview - Shanghai Chengdi Xiangjiang Data Technology Co., Ltd. announced corrections of prior accounting errors affecting consolidated financial statements from Q1 2023 to Q3 2024, specifically in the balance sheet and income statement, without impacting the cash flow statement [1][2]. Accounting Error Corrections - The corrections were approved by the company's board and audit committee, addressing issues such as incorrect internal transaction revenue cost offsets and inaccurate capitalization of rental assets [2][3]. - Specific errors included: 1. Misreporting in internal transaction profit and loss offsets, leading to understated operating costs and overstated inventory [2]. 2. Incorrect capitalization of renovation expenses related to the "Lingang Intelligent Technology Innovation and Entrepreneurship Park Project" [3]. 3. Delays in recognizing revenue and inventory estimates for IDC system integration projects due to inefficiencies in document handling [3]. Financial Impact of Corrections - The corrections will adjust various financial statement items, with notable changes including: - Construction in progress decreased by approximately 5.51 million RMB, resulting in a new total of approximately 1.09 billion RMB [4]. - Long-term deferred expenses increased by approximately 3.68 million RMB, leading to a new total of approximately 19.66 million RMB [4]. - Unallocated profits decreased by approximately 1.84 million RMB, resulting in a new total of approximately 323.66 million RMB [4]. Financial Performance - For the first half of 2023, the company reported a revenue of approximately 930.98 million RMB, a decline of 5.26% compared to the previous year [9]. - The net profit attributable to shareholders was reported at -1.43 million RMB, reflecting a significant decrease due to challenges in the foundation and infrastructure business segment, which saw a revenue drop of 44.11% [9][10]. - The IDC business segment, however, showed resilience with a revenue increase of 22.06% [9][10]. Key Financial Metrics - The company reported a total asset value of approximately 8.16 billion RMB, down 3.61% from the previous year [6]. - The net profit margin for the reporting period was significantly impacted by increased credit impairment losses, leading to a net profit attributable to shareholders of -16.15 million RMB, a decrease of 149.49% [7][11]. - The basic earnings per share were reported at -0.04 RMB, indicating a substantial decline compared to the previous period [7][11].