On the evening of January 17, Cisco Rui (688053) announced that the company received the "Decision on Administrative Supervision Measures" issued by the Sichuan Securities Regulatory Bureau on the 17th.

After investigation, Cisco Rui recognized revenue of 9.9604 million yuan in 2022 without meeting the conditions for revenue recognition, resulting in an overstatement of operating income of 9.9604 million yuan and an overstatement of total profit of 7.5333 million yuan in the company's 2022 annual report, which does not meet the requirements of Article 12 of the "Accounting Standards for Business Enterprises - Basic Standards" and Article 4 of the "Accounting Standards for Business Enterprises No. 14 - Revenue". Article 5.

The Sichuan Securities Regulatory Bureau pointed out that the company's above-mentioned behavior violated the provisions of Article 3, Paragraph 1 of the Administrative Measures for Information Disclosure of Listed Companies (Decree No. 182 of the CSRC, hereinafter referred to as the "Measures"). According to the provisions of Article 4 and Article 51, Paragraph 3 of the Measures, Zhang Ya, Chairman of the Board of Directors, Ma Weidong, then General Manager, and Tu Quanxin, then Chief Financial Officer, were primarily responsible for the above problems.

According to Article 52 of the Measures, the Sichuan Securities Regulatory Bureau decided to take administrative supervision and management measures against Cisco Rui to order corrections, and to take administrative supervision and management measures to issue warning letters to Zhang Ya, Ma Weidong and Tu Quanxin, and included them in the integrity file of the securities and futures market.

On the same day, Cisco received the "Notice of Case Filing" issued by the China Securities Regulatory Commission. Due to suspected violations of laws and regulations in information disclosure, in accordance with the Securities Law of the People's Republic of China, the Administrative Punishment Law of the People's Republic of China and other laws and regulations, the CSRC decided to file a case against Ciscorui.

According to the data, Chengdu Cisco Microelectronics Co., Ltd. was established in 2014 and is a national high-tech enterprise that undertakes military electronic component testing and screening tests, destructive physical analysis, failure analysis, environmental reliability testing, quality reliability analysis and other service projects. On July 8, 2022, the company landed on the Science and Technology Innovation Board of the Shanghai Stock Exchange at an issue price of 55.53 yuan per share.

According to Choice statistics, in the year of listing, Ciscorui's revenue and net profit attributable to the parent company increased by only 9.35% and 0.34% year-on-year. In 2023, Ciscorui's performance will "change face", and the net profit attributable to the parent company will decrease by 55.75% year-on-year.

In the first three quarters of 2024, Ciscorui's performance plummeted, with a net loss of 661,400 yuan. The company explained that due to the personnel adjustment of the military industry, the adjustment of the core parameters of weapons and equipment, the adjustment of weapons and equipment models and other factors, the phased adjustment of the military industry, the upstream and downstream order demand of the industry has decreased, resulting in a decline in the company's testing orders in the current period, and at the same time, due to the intensification of market competition, the price of some categories of testing business has also dropped significantly.

In addition, Shenzhen Business Daily and Reading Client noted that in September 2024, Cisco announced that it would extend the date of the four major fundraising projects of "Chengdu Testing and Testing Base Construction Project", "Environmental Test Center Construction Project", "R&D Center Construction Project" and "Wuxi Testing and Test Base Construction Project" to September 2026.

In the secondary market, since its listing, the share price of Cisco Rui has broken more than half of the price, and as of the 17th, it closed up 0.56% to 27.56 yuan per share, with a total market value of 2.756 billion yuan.