HENGDA and related personnel received a warning letter from the Jiangxi Securities Regulatory Bureau
HENGDA received a warning letter from the Jiangxi Securities Regulatory Bureau, pointing out that its subsidiary Baole Interactive's business income accounting is not standardized, affecting operating income, and there are inaccuracies in information disclosure. In addition, Baole Interactive's internal control and approval processes are also not standardized
According to the Zhitong Finance APP, HENGDA (002591.SZ) announced that the company received a warning letter from the Jiangxi Securities Regulatory Bureau regarding Jiangxi HENGDA High-Tech Co., Ltd., Hu Enxue, and Wan Jianying.
The Jiangxi Securities Regulatory Bureau pointed out the following main issues with the company: First, the accounting for business income of its subsidiary Shenzhen Baole Interactive Technology Co., Ltd. (referred to as "Baole Interactive") is not standardized. For example, from 2021 to 2023, Baole Interactive directly recorded commissions received from relevant telecommunications operators as operating income without offsetting operating costs, which does not comply with Article 16 and Article 19 of the "Accounting Standards for Enterprises No. 14 - Revenue," affecting amounts that accounted for 2.47%, 1.84%, and 0.02% of the company's operating income for the respective periods. Second, the information disclosure regarding the cooperation relationship between Baole Interactive and its related clients is inaccurate. For instance, the company's annual reports for 2021-2022 disclosed that Baole Interactive "has core customer resources such as Baidu, Huawei, Tencent, and Ctrip," but in the relevant years, Baole Interactive connected through third-party suppliers and was not a direct supplier to Huawei and Tencent. Additionally, from 2021 to 2022, Baole Interactive also had issues such as lax internal controls and some inverted approval processes
