Xi'an Triangle Defence faces regulatory action over accounting, disclosure

Xi'an Triangle Defence (SZSE:300775) announced that it received a regulatory decision from the Shaanxi Securities Regulatory Bureau citing issues with income accounting, internal controls, and information disclosure. The regulator found that the company recognized revenue on some products before the transfer of control, leading to inaccurate financial reporting for 2023 and the first half of 2024. Further, the company's internal controls for specific customized products were deemed deficient, and disclosures surrounding revenue recognition policies were incomplete. The regulator also flagged the company for improper use of raised capital and inadequate management of insider information. As a result, the Bureau has ordered Xi'an Triangle Defence to rectify the issues and issued warning letters to Chairman Yan Jianya, General Manager Guo Yingguang, Deputy General Manager Yan Jian, and Board Secretary Liu Jiajun. The company must submit a written rectification report within 30 days.