Butong Shares has issued a reply announcement to the Shanghai Stock Exchange's inquiry letter regarding its 2025 annual report, clarifying one by one core financial issues such as accounting errors, revenue recognition, large construction-in-progress, and related-party loan interest. The company has conducted a comprehensive retroactive adjustment and rectification of the payroll period-error arising from the practice of 'previous month attendance, following month payment' since its establishment in 1994, and has committed to strictly accruing the current month's payroll at month-end on an accrual basis starting from January 2026. In 2025, the company's higher education business revenue was nearly 300 million yuan, up 4.48 percent year-on-year, mainly driven by higher tuition standards and expanded enrollment at its subsidiary Xi'an Jiaotong University City College. Revenue is expected to remain stable above 300 million yuan from 2026 to 2028. At period-end, construction-in-progress stood at 485 million yuan, accounting for 34.05 percent of total assets, mainly for the City College campus phase-two infrastructure project, which has not yet been transferred to fixed assets as it has not reached the intended usable state. As of the end of 2025, City College still owed the controlling shareholder Xi'an Jingfa Group loan principal of 179 million yuan and interest of 140 million yuan, with an effective annual interest rate of 4.35 percent on the loan. This rate has been consistent with the then central bank benchmark rate since September 2015 and remains unchanged. The company states the rate is fair and there is no benefit transfer to the controlling shareholder.
ButOne Information Corp XiAnCompany clarifies accounting errors, commits to rectification, and confirms stable revenue outlook, reducing regulatory risk.