YES optoelectronics warned over financial disclosure inaccuracies

YES Optoelectronics (Group) Co., Ltd. announced that it, along with chief executive Jia Jitao and chief financial officer Jia Yan, received a warning letter from the Liaoning Securities Regulatory Bureau. The decision, documented as [2025]25, cites several issues leading to inaccurate financial information in the company's 2024 annual report.

Key findings include premature revenue recognition for some export sales, insufficient provision for inventory impairment due to overlooked tax, selling expenses, and potential loss contracts, and inconsistencies in standard cost accounting affecting operating costs. Additionally, the company misclassified certain inventory as goods in transit and made errors in calculating total annual purchases, which distorted the proportion of purchases from its top five suppliers.

The company stated it takes the issues seriously and will strengthen its compliance with information disclosure regulations and financial accounting standards. The administrative regulatory measure is not expected to affect normal production and operations, and the company will continue to fulfill its information disclosure obligations.