On April 17, Yaguang Technology Group issued an announcement regarding the implementation of other risk warnings and the suspension and resumption of trading of the company’s shares.
According to the announcement, Yaguang Technology Group’s stock will be suspended from trading for one day starting from the opening of the market on April 20, 2026, and will resume trading on April 21, 2026. After the resumption of trading, other risk warnings will be implemented, and the stock abbreviation will be changed from “Yaguang Technology” to “ST Yaguang”; the stock code will remain unchanged as “300123”; after the implementation of other risk warnings, the daily price fluctuation limit of the company’s stock will remain at 20%.
Regarding the reasons for being subject to other risk warnings, Yaguang Technology pointed out that the lower of its net profit before and after deducting non-recurring gains and losses for the past three fiscal years was negative, and the company’s 2025 audit firm issued an unqualified audit report with a paragraph on significant uncertainties related to going concern in the company’s 2025 financial report. This triggers Article 9.4, Paragraph 1, Item (vi) of the “Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange ChiNext Market”: If a listed company has “the lower of its net profit before and after deducting non-recurring gains and losses for the past three fiscal years is negative, and the audit report for the most recent fiscal year shows that there is uncertainty about the company’s ability to continue as a going concern”, the company’s stock trading will be subject to other risk warnings.
Yaguang Technology stated that it will eliminate the impact of the above matters by actively resolving debt pressure and taking multiple measures to accelerate capital recovery.
In terms of accelerating capital recovery through multiple measures, Yaguang Technology will expedite the disposal of idle assets in its boat and vessel sector. In 2023-2024, the company recovered approximately RMB 100 million in cash and generated over RMB 40 million in disposal revenue by disposing of some idle assets in its Zhuhai Industrial Park. In the future, it will continue to dispose of the remaining idle assets in the Zhuhai Industrial Park through market-oriented methods. A framework agreement for the disposal of idle assets has been signed in the Yuanjiang Industrial Park, with plans to gradually resolve the issue through government reclamation of some idle land and attracting third-party entities to take over the land.
In addition, Yaguang Technology stated that it will do its utmost to ensure the delivery of existing orders, concentrate resources to ensure the completion and delivery of existing orders, and simultaneously accelerate subsequent processes such as acceptance and settlement, striving to achieve payment collection as soon as possible and improve its cash flow situation.
On the same day, Yaguang Technology also released its “2025 Annual Report Summary”. During the reporting period, Yaguang Technology achieved operating revenue of RMB 784 million (approximately US$115 million), a year-on-year decrease of 17.63%; net profit attributable to shareholders of the listed company was RMB -1.229 billion (approximately US$ -180 million), a year-on-year decrease of 33.77%; and net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was RMB -1.259 billion (approximately US$ -185 million), a year-on-year decrease of 30.66%.
Yaguang Technology believes there are three main reasons for the decline in performance: First, the military electronics business was affected by factors such as delayed procurement plans by downstream customers, delayed product delivery, insufficient material availability, and customer cost control, resulting in lower-than-expected operating performance and an impairment loss of RMB 880 million on the goodwill of Chengdu Yaguang. Second, the settlement price was reduced due to customer valuation factors in the military electronics business, resulting in a decrease in revenue of RMB 111 million during the reporting period. Third, the progress of asset disposal in the shipbuilding sector was slower than expected, resulting in insignificant economies of scale, high depreciation and amortization expenses, and a large amount of interest-bearing liabilities, which generated high financial costs and affected overall profitability.
Regarding its boat and vessel business, Yaguang Technology points out that with the entry of small and medium-sized shipyards, these boats and vessels face low-price competition from new market entrants, intensifying market competition.
It is worth noting that on July 4, 2025, Li Yuexian, the former legal representative and chairman of Yaguang Technology, was detained by the Supervisory Commission of Huaxian County, Henan Province, until February 11, 2026, when the Supervisory Commission of Huaxian County lifted the detention measures against Li Yuexian. On July 7, 2025, Yaguang Technology announced the appointment of Li Yuexian’s son, Li Ji (born in 1990), as the company’s vice general manager.
During Li Yuexian’s detention, Hu Dairong became the legal representative and chairman of Yaguang Technology, and the change of legal representative was completed on January 28, 2026. After Li Yuexian’s detention was lifted, Hu Dairong continued to serve as the legal representative and chairman.
According to available information, Yaguang Technology was established in June 2003 and went public in 2010. Its main business is military electronics and intelligent boats. Its intelligent boat products include three major series: government vessels, defense equipment, and yachts/cruise boats, distributed across two industrial parks in Yiyang, Hunan and Zhuhai, Guangdong. The Zhuhai production base can produce over 200 new types of yachts annually; the Yiyang production base mainly produces composite material boats, metal material boats, various hybrid material boats, and marine engineering vessels.