Leascend and related parties received a regulatory letter from the Shenzhen Stock Exchange. The company adopted the gross method for accounting for its domain name business, which does not comply with relevant regulations. Additionally, for the leasing business of industrial parks with rent-free periods, the company amortized the rent-free period within the first year of the lease contract instead of over the entire lease term, which also does not comply with relevant regulations. These matters resulted in inaccuracies in the reported amounts of operating income, operating costs, and other accounting items in the company's 2023 annual financial statements. The company's actions violated relevant regulations of the Shenzhen Stock Exchange. The company's chairman, Huang Mingliang, and the general manager and CFO, Yang Ping, failed to exercise due diligence and are primarily responsible for the aforementioned actions