Linzhou Heavy Machinery announced that the company received the “Administrative Penalty Decision” from the Henan Regulatory Bureau of the China Securities Regulatory Commission on November 11, 2026. It was discovered that the company did not have control over the products when carrying out the “trade” business from January to August 2025, and the relevant revenue recognition did not comply with regulations. As a result, the 2025 semi-annual report inflated revenue by 323 million yuan, accounting for 35.64% of the current revenue; inflated operating costs by 321 million yuan, accounting for 43.15% of the current operating costs. The Henan Supervisory Authority decided to issue a warning and fine of 4 million yuan to the company; to give a warning and fine of 2.2 million yuan to chairman Han Luyun and general manager Guo Chuan respectively; and to give a warning and fine of 2 million yuan to then-financial director Guo Chao.

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