Guangzhou Hi-Target Navigation Tech announced on September 4, 2026, that due to insufficient bad debt provisions, premature revenue recognition, and inaccurate disclosure of top five customers, among other financial and information disclosure issues, the company, along with Chairman Liao Dinghai, President Liao Jianping, and CFO Zeng Jiacheng, received a warning letter from the Guangdong Securities Regulatory Bureau. An investigation found that because the company continued to use the aging method for bad debt provisions on deregistered customers and inaccurately classified aging, it under-provisioned bad debts by 2.51 million yuan in 2024 and 945,000 yuan in 2025. It also prematurely recognized revenue of 2.46 million yuan before customers completed contract acceptance and equipment risks were transferred. In the top five customers disclosed in the 2025 annual report, two customers and one non-top-five customer were controlled by the same person but were not disclosed on a consolidated basis, resulting in inaccurate customer information. In addition, there were minor amount errors in the notes to the annual report. The company stated it will seriously rectify the issues, strengthen financial accounting and information disclosure management, submit a rectification report, and hold relevant responsible persons internally accountable. This regulatory measure does not affect normal production and operations.
Hi target Navigation Tech CoGuangdong Securities Regulatory Bureau issued a warning letter over insufficient bad debt provisions, premature revenue recognition, and inaccurate customer disclosure.
