Yanhua Smartech reports losses, changes accounting and audit policies

Shanghai Yanhua Smartech Group (SZSE:002178) reported a net loss of CNY 21.3 million for 2024, significantly down from a CNY 22.5 million profit in the previous year as revenues fell almost 19% due to reduced client spending and slow regional growth. These earnings triggered scrutiny from the company's auditor, which has flagged weaknesses in Shanghai Yanhua Smartech's internal controls. The audit report on internal controls indicates the weakness will be addressed by management, however.