Lianchuang Electronics: Received a warning letter from Jiangxi Securities Regulatory Bureau

Lianchuang Electronics’ announcement: the company received a warning letter issued by the Jiangxi Securities Regulatory Bureau, which pointed out problems in the company’s financial accounting and internal control management. Specifically, the accounting for the collection and payment of water and electricity fees was not standardized, resulting in overstated revenue and costs of RMB 13.9048 million in 2023 and RMB 15.0859 million in 2024; RMB 130 million of customer sales proceeds receivable in 2023 was mistakenly recorded as prepayments, resulting in the net profit for 2023 being overstated by RMB 3.9145 million and the net profit for 2024 being understated by RMB 3.9145 million. In addition, the company did not actually carry out internal accountability and reward-and-punishment measures for accounts receivable, and the related collections records were incompletely maintained.