Shanghai Chengdi Hong Kong Data Technology Co., Ltd. (Chengdi Hong Kong) announced on September 11 that it has received a warning due to inaccurate financial data disclosure in seven financial reports from the first quarter of 2023 to the third quarter of 2024. Former Chairman Xie Xiaodong and three other individuals have been held accountable for the discrepancies.
In the announcement titled “Notice Regarding Receipt of Shanghai Securities Regulatory Bureau’s Administrative Supervision Measures Decision” on the 11th, Chengdi Hong Kong stated that in the seven financial reports from the first quarter of 2023 to the third quarter of 2024, there were inaccuracies in data disclosure involving three major accounting errors. Firstly, there were problems with the offsetting of internal transactions of subsidiaries. In 2023, errors were made in reporting during the process of offsetting internal transactions, leading to underestimation of operating costs, overestimation of inventory, and overestimation of operating income. Secondly, there were discrepancies in the amortization of right-of-use assets, directly resulting in data distortions in categories such as construction in progress and long-term deferred expenses in the seven reports. Additionally, some project revenues were recognized across periods, directly impacting the corresponding quarter’s operating income, undistributed profits, and other data.
On September 8, the “Decision on Issuing Warning Letter Measures to Shanghai Chengdi Hong Kong Data Technology Co., Ltd., Xie Xiaodong, Zhao Qianbo, and Yang Zheyi” from the Shanghai Stock Exchange revealed that due to financial data errors, Shanghai Chengdi Hong Kong Data Technology Co., Ltd. and then Chairman and CEO Xie Xiaodong were criticized and issued a warning letter; meanwhile, Zhao Qianbo, who served as the CFO from July 2022 to November 2023, and Yang Zheyi, who served as the CFO from November 2023 to June 2024, are also held responsible for relevant matters during their tenure and were similarly criticized and issued a warning letter.
According to reports from the Titanium Media app, the company accumulated a net loss of nearly 1.3 billion yuan over three consecutive years. On October 14, 2024, Chengdi Hong Kong announced that the actual controlling shareholder would change to the State-owned Assets Supervision and Administration Commission of the State Council.
The announcement stated that the company plans to issue 139 million A-shares to China Electric Power Consultants Group Beijing Smart Computing Co., Ltd., accounting for approximately 23.08% of the total post-issuance share capital. Following the completion of the issuance to the designated entity, the actual controlling shareholder will become the State-owned Assets Supervision and Administration Commission of the CPC Central Committee.
Public records indicate that Shanghai Chengdi Hong Kong Data Technology Co., Ltd. was established on April 26, 1997, with its registered address in Jiading District, Shanghai. Its current business scope includes data center construction, system integration, operation and maintenance, and cloud computing infrastructure services.