The hyper-growth driven by the investor’s buy-and-build strategy led to inaccurate financial reporting. More than 10,000 annual intercompany transactions and merger-related entries (such as costs associated with the acquisition strategy) distorted the financial results and complicated financial planning, particularly in terms of liquidity management. There was a lack of internal resources and only limited in-house expertise to effectively address these challenges.

Establishment of a fully integrated consolidation model for all entities, including income statements, balance sheets, and cash flow statements for the past three years; More than 20,000 adjustments to the income statements and balance sheets based on individual journal entries to ensure accuracy and transparency; Preparation of short-term liquidity planning based on consolidated figures to enable effective cash flow management

A fully integrated consolidation model for all subsidiaries improved planning efficiency and facilitated decision-making. The adjusted consolidated financial statements accelerated the implementation of LucaNet and simplified the Group’s financial reporting.