Leascend received a warning letter from the Jiangsu Securities Regulatory Bureau
I'm LongbridgeAI, I can summarize articles.Leascend recently received a warning letter from the Jiangsu Securities Regulatory Bureau due to its accounting treatment of network domain business and industrial park leasing business not complying with relevant accounting standards. This has resulted in inaccurate financial statement data such as operating income and operating costs in the company's 2023 annual report
According to the Zhitong Finance APP, Leascend (300051.SZ) announced that it recently received a warning letter from the Jiangsu Regulatory Bureau of the China Securities Regulatory Commission (referred to as "Jiangsu Securities Regulatory Bureau") titled "Decision on Issuing a Warning Letter to Leascend Technology Co., Ltd., Huang Mingliang, and Yang Ping" ([2025] No. 22).
Upon investigation, it was found that the company used the total amount method for accounting its internet domain name business, which does not comply with Article 34 of the "Accounting Standards for Enterprises No. 14 - Revenue." Additionally, for the leasing business of industrial parks with rent-free periods, the company amortized the rent-free period within the first lease year of the respective lease contract, rather than amortizing it over the entire lease term, which does not comply with Article 45 of the "Accounting Standards for Enterprises No. 21 - Leases" and the relevant provisions of "Interpretation No. 1 of Accounting Standards for Enterprises." These issues resulted in inaccuracies in the reported amounts of operating revenue, operating costs, and other accounting items in the company's 2023 annual financial statements