Yeebo (International Holdings) (HKG:0259) plans to reduce its level of involvement in Suzhou QingYue Optoelectronics Technology (SHA:688496) after the firm was found guilty of overstating its profits, according to a Hong Kong bourse filing Monday.

China's Securities Regulatory Commission began probing the firm last year over alleged false financial reporting and found Suzhou QingYue guilty of overstating its profit by 10.7 million yuan and 45.4 million yuan for the years ended Dec. 31, 2021, and Dec. 31, 2022; and 47.5 million yuan for the first half of the year ended Dec. 31, 2023.

The firm was fined 172.9 million for the incident and may be delisted from the STAR market over the violation.

Yeebo, which held an approximately 28.08% equity interest in the business as of November last year, said the company and its subsidiaries were not involved in the incident and no longer had any representation with Suzhou QingYue after Leung Tze Kuen, an executive director, resigned from the company's board.

Yeebo estimated that the carrying value of its investment in Suzhou QingYue amounted to HK$294 million as of Sept. 30, 2025, or around 5.2% and 6% of its total assets and net assets, respectively.

The firm said that if required, writing off its investment in Suzhou QingYue would have no material impact on its cash flow.

Yeebo's shares fell nearly 5% in early-morning trade in Hong Kong on Monday.