The Shanghai Stock Exchange recently issued a regulatory inquiry regarding But'one Shares' 2025 annual report, focusing on the company's accounting errors. Since its establishment in August 1994, the company has processed employee compensation on a basis of recording attendance in the previous month and accruing and paying in the following month, rather than estimating the current month's payroll at month-end under the accrual basis. This led to persistent cross-period issues in employee compensation payable and related costs and expenses, requiring retrospective adjustments to multiple prior-period financial statements. But'one Shares responded that the root cause of the error was the inability to collect full-month data on clock-ins, leave, and performance assessments by month-end. The human resources department issues payroll sheets in the following month, and the finance department accrues compensation in that same following month, with annual profit and loss still reflecting 12 months of charges. This was a matter of accounting habit rather than fraud, and the internal control failure stemmed from the same cause, with no subjective falsification. Following a comprehensive self-review, apart from the payroll cross-period issue, the only other matter was the delayed booking of construction in progress at its subsidiary City College for the first three quarters of 2024. No other corrections were required. The prior-period errors were corrected in the 2025 annual report disclosed on April 3, 2026. Starting from January 2026, the company began estimating the current month's payroll at month-end, while simultaneously revising relevant systems, optimizing review processes, and conducting specialized training. The remediation is now complete, and the accounting process is operating effectively.
ButOne Information Corp XiAnSSE regulatory inquiry for accounting errors spanning nearly 30 years, requiring retrospective adjustments and indicating internal control failures.