Italy’s securities regulator, Consob, has asked Ferretti Sp A for information on its assessment of asset values after the yachtmaker cut its annual outlook. In a Sept. 10 letter, Consob requested the analysis supporting Ferretti’s conclusion that there were no indicators of impairment at midyear and that no impairment test was required. The regulator cited weaker orders and reduced guidance as factors to consider.

Consob also sought updated order figures, including any cancellations, suspensions or delays. Representatives for Ferretti and Consob declined to comment. The maker of Riva and Pershing yachts reported in late July that first-half orders fell 27% from a year earlier, citing intensifying competition and customers taking longer to make decisions.

Chief Executive Officer Stassi Anastassov described the challenge as primarily commercial rather than financial, with net cash at €95 million ($106 million) as of June. Consob separately requested details of any distribution agreements in the United Arab Emirates. Ferretti attributed delays in signing Middle Eastern contracts to geopolitical tensions in its July earnings release.

Ferretti is one of Italy’s leading yachtmakers, building vessels for wealthy buyers under brands including Riva, Pershing and Wally. It underwent a management shakeup in May after its top shareholder, China’s Weichai Group, won a vote over board control. Shares of the company, based in Forlì near the Adriatic coast, have declined around 5% this year, lowering the company’s market value to just below €1 billion.

The group operates seven shipyards in Italy and has customers in more than 70 countries. Its range spans smaller motor yachts to custom-built superyachts. Bloomberg reported in June that Ferretti was considering making an offer for struggling competitor The Italian Sea Group.

Ferretti is required to provide the requested information within 10 working days of receiving the letter.