YingTong Telecommunication (002861.SZ) and related personnel have received a warning letter from the Hubei Securities Regulatory Bureau.

YingTong Telecommunication (002861.SZ) announced that the company recently received a decision from the Hubei Regulatory Bureau of the China Securities Regulatory Commission (referred to as the "Hubei Regulatory Bureau") regarding the issuance of a warning letter to YingTong Telecommunication Limited, Huang Hui, and Wu Zhongjia. According to the decision, based on the company's disclosed 2024 annual report, the company recognized non-monetary assets exchange gains of 4.9249 million yuan in 2024, which were proceeds from the sale of unlocked shares under an employee stock ownership plan. According to regulations, proceeds from the sale of treasury shares should be recorded in capital reserves rather than as non-operating income, indicating an accounting error by the company. The company should recognize stock-based compensation expenses based on the fair value of the shares actually granted, rather than based on the unlocking ratio, and any excess amounts should be reversed. As a result, the company disclosed a correction announcement in April 2026 regarding the correction and retrospective adjustments of financial data for 2023 and 2024. Huang Hui, as the then Chairman and CEO, and Wu Zhongjia, as the then CFO, failed to faithfully and diligently perform their duties and bear primary responsibility for the company's aforementioned violations. The Hubei Regulatory Bureau has decided to issue a warning letter as an administrative regulatory measure to the company, Huang Hui, and Wu Zhongjia, and record this in their integrity archives in the securities and futures markets.