Case Study: Chip Firm’s Compliance & Efficiency
At A Glance
Client Industry: Technology
Regions Served: Beijing, Hong Kong SAR (cross-border coordination)
Client Overview: A Beijing‑based technology platform providing professional testing and technical support services to chip design companies. The client operates within China’s chip ecosystem and maintains a related Hong Kong SAR entity under the same ownership structure.
Client Brief
- Non-compliance with PRC accounting and tax rules results in a tax inspection, additional back assessments and penalties
- Limited understanding of revenue and cost recognition under PRC accounting standards
- Weak internal controls and fragmented business processes
- Missing documentation and incomplete financial records
- Urgent year‑end closing deadlines
- Inefficient cross‑border fund utilisation between Chinese Mainland and Hong Kong SAR entities
How We Helped
- Conducted a comprehensive financial, tax and operational health check
- Identified key risks relating to revenue recognition, cost allocation and documentation gaps
- Developed practical solutions to address accounting, tax and internal control issues
- Provided structured year‑end closing guidance, including timelines and review checklists
- Recommended improvements to internal control frameworks and process standardisation
- Supported the alignment of cross‑border financial management practices between the Chinese Mainland and Hong Kong SAR entities
Our Value
- Addressed accounting discrepancies and documentation gaps, improving financial accuracy and reporting reliability
- Strengthened internal controls and standardised business processes
- Reduced tax exposure and regulatory risk following tax authority inspections
- Ensured timely completion of year-end financial reporting
- Improved visibility over financial performance and fund management
- Established a stronger foundation for ongoing financial governance and scalable growth