Ysstech takes corrective action after regulatory order on accounting issues

Shenzhen Ysstech Info-tech Co., Ltd. (300377) announced on November 30, 2025, that it has completed initial rectification measures in response to a directive from the Shenzhen securities regulatory bureau issued on October 31, 2025. The issues identified include non-compliant revenue accounting, insufficient impairment provision for long-term equity investments, irregular accounting for other non-current financial assets, and inadequate impairment provision for accounts receivable.

Key corrective actions include systemic improvements to financial accounting policies, specialized training for financial personnel on relevant accounting standards, and the establishment of robust review and approval mechanisms for valuation models and impairment calculations. For instance, the company will no longer directly offset revenue for bad debt risks and will enhance the assessment of profitability forecasts for long-term equity investments.

The company's board and management have affirmed that these rectifications are complete and will be continuously monitored to ensure ongoing compliance and improved corporate governance. This initiative aims to uphold the legitimate interests of the company and all shareholders, promoting compliant, sustainable, and healthy development.