Guangzhou Hi-Target Navigation Tech (300177.SZ) and relevant personnel received a warning letter from the Guangdong Securities Regulatory Commission.

Guangzhou Hi-Target Navigation Tech (300177.SZ) announced today that the company has received a notice from the Guangdong Regulatory Bureau of the China Securities Regulatory Commission (referred to as "Guangdong Securities Regulatory Bureau"), entitled "Decision on Taking Warning Measures Against Guangzhou Hi-Target Navigation Tech Co., Ltd., Liao Dinghai, Liao Jianping, and Zeng Jiacheng" (referred to as "the 'Warning Letter'"). It is reported that the Guangdong Securities Regulatory Bureau conducted an on-site inspection of the company and found the following issues: 1. The company continued to adopt the aging method to provision for bad debts for some clients that had been canceled, and inaccurately categorized the aging of accounts receivable for certain clients, resulting in an insufficient provision for bad debts. This led to an understatement of bad debt provisions amounting to 2.5118 million yuan and 945,000 yuan for 2024 and 2025, respectively. 2. In 2025, even though a client had not completed contract acceptance and the risk of loss due to equipment damage had not yet been transferred, the company recognized revenue of 2.4565 million yuan based on the client's receipt of the equipment and payment of most of the fees, which led to premature revenue recognition. 3. Two of the top five clients disclosed in the company's 2025 annual report, as well as one client outside the top five, are controlled by the same individual. The company failed to consolidate them as the same client, leading to inaccurate information regarding the top five clients disclosed in the annual report. Additionally, there are minor errors in the amounts reported under "Lease Liabilities Payment" and "Add: Current Portion of Lease Liabilities" in the notes to the financial statements of the 2025 annual report. The aforementioned circumstances are in violation of relevant regulations. Liao Dinghai, as the chairman of the company, Liao Jianping, as the president, and Zeng Jiacheng, as the financial director, did not fulfill their diligence and responsibility obligations as required, and bear primary responsibility for the company's above-mentioned violations. The Guangdong Securities Regulatory Bureau has decided to take administrative supervisory measures by issuing a warning letter to the company, Liao Dinghai, Liao Jianping, and Zeng Jiacheng.