On April 29, 2026, Zhejiang Sensata Technologies Holding N.V. (formerly Sensata Technologies Holding, now ST Sensata, 300068) disclosed its 2025 annual report and related audit documents. ShineWing Certified Public Accountants issued an audit report with a qualified opinion on the company's 2025 financial statements, accompanied by an emphasis of matter paragraph regarding significant uncertainty about the company's ability to continue as a going concern. Additionally, an adverse opinion was issued on the effectiveness of the company's internal controls. As a result, the company's stock has been placed under special treatment (ST) due to other risk warnings.
Key compliance issues identified include abnormal large prepayments. A year-end prepayment balance of 365 million yuan was recorded for the largest supplier, with cumulative prepayments of 4.633 billion yuan made in 2025, while goods received amounted to only 134 million yuan. The authenticity and recoverability of these payments are in question.
The company also provided guarantees or joint loans for borrowings by suppliers, customers, non-financial institutions, and individuals without undergoing approval procedures or recording them in the accounts. Related liabilities and fund transactions could not be verified, indicating potential unauthorized occupation of funds by related parties.
Significant overdue accounts receivable were noted, with 183 million yuan in receivables from the fifth-largest customer overdue for more than one year. The reasonableness of bad debt provisions for these receivables could not be confirmed.
Substantial uncertainty exists regarding the company's ability to continue as a going concern. The company reported massive losses for both 2024 and 2025, with net profits attributable to shareholders of -1.497 billion yuan and -2.642 billion yuan, respectively. As of the end of 2025, the debt-to-asset ratio stood at 92.14%, with current liabilities significantly exceeding current assets, indicating severe solvency pressure. This is compounded by the adverse opinion issued on the company's internal controls.
Affected investors may be eligible to participate in claim filings. According to Attorney Hong Peng of Zhejiang Zhiren Law Firm, investors who purchased the stock between April 26, 2025, and April 28, 2026, and continued to hold the stock after market close on April 28, 2026, may register to file claims. Legal representation will be provided on a full contingency basis, meaning no fees will be charged unless compensation is obtained.
During the registration phase, investors need only provide basic information. Upon approval, further instructions will be sent via SMS to guide communication with legal representatives. Required documents, including transaction statements, account certifications, and authorization agreements, can be prepared within half a day and mailed to the law firm's address. All subsequent procedures will be handled by legal representatives, with no need for personal appearances.
Click to register for claim filing.