Songcheng Performance receives warning letter for accounting errors

Songcheng Performance Development announced it received a warning letter from the Zhejiang Securities Regulatory Bureau (Zhejiang Regulatory Bureau) on June 18, 2025, following a restatement of 2022 financial results. The restatement involved a reduction of CNY 57,404,000 in both total profit and net profit attributable to the parent company, representing 414.75% and 594.37% of the originally reported figures, respectively. The company attributed the errors to the impact of its associate, Flower Room Group, whose financial reporting was affected by a police investigation. The Zhejiang Regulatory Bureau deemed that the company, along with Chairman Zhang Xian, President Shang Lingxia, CFO Chen Shengmin, and Board Secretary Zhao Xueying, violated disclosure regulations. Songcheng Performance Development has been ordered to submit a written report to the Zhejiang Regulatory Bureau within 10 working days and says it will improve its financial reporting and internal controls.