Securities Code: 002535 Securities Abbreviation: Linzhou Heavy Machinery Announcement Number: 2026-0053
Linzhou Heavy Machinery Group Co., Ltd. Announcement on Reply to Shareholder Inquiry Letter and Penalty Opinion and Rectification Measures for Performance Correction Issues
The Company and all members of the Board of Directors guarantee the content of the information disclosure is true, accurate, and complete, and contains no false records, misleading statements, or major omissions.
Linzhou Heavy Machinery Group Co., Ltd. (hereinafter referred to as the "Company" or "Linzhou Heavy Machinery") recently received the "Shareholder Inquiry Letter" (Hu Fu Center Xing Quan Han [2026] No. 49) from China Securities Investor Protection Network Co., Ltd., which expressed concern about the Company's 2025 performance forecast shifting from profit to loss, and the full exclusion of trade business accounting for over 30% of total revenue due to a prior accounting error correction. China Securities Investor Protection Network Co., Ltd. exercised its right to inquire and advise on issues of concern to small and medium investors. The Company attaches great importance to the "Shareholder Inquiry Letter" and has actively organized personnel to provide a thorough response. The reply to the relevant issues and the penalty opinion and rectification measures for the performance correction issues are hereby announced as follows:
I. Recommendation to the Company to promptly conduct internal accountability for and rectify the irregular performance forecast correction.
The Company disclosed its "2025 Performance Forecast" on January 30, 2026, predicting a net profit attributable to shareholders of the listed company ranging from RMB 8.5 million to RMB 12 million. On April 28, 2026, the Company disclosed the "2025 Performance Forecast Correction Announcement," revising the projected net profit to a loss of RMB 45 million to RMB 49 million. The final audited net profit for 2025 was RMB -4,744.07 million, with operating performance shifting from profit to loss. The change in net profit amount was significant.
The Company explained that the primary reason for the correction was the adjustment of the income tax rate from 25% to 15% after obtaining the High-tech Enterprise Certificate on November 4, 2025. However, the Company failed to adequately assess the impact of this tax rate change on deferred tax assets. China Securities Investor Protection Network Co., Ltd. noted that nearly three months elapsed between the Company obtaining the High-tech Enterprise Certificate and disclosing the performance forecast. During this period, relevant tax policies did not change. However, the Company did not update and prepare the performance forecast data in a timely manner based on its actual situation before the performance forecast disclosure (i.e., before January 30, 2026). In response, some small and medium investors questioned whether management was fully aware of the potential loss and the failure to disclose information in a timely manner on online platforms like stock forums. Recently, a regulatory letter from the Shenzhen Stock Exchange clearly identified a significant discrepancy between the performance disclosed in the Company's performance forecast and the actual performance, which violates the "Rules Governing the Listing of Stocks" and other relevant regulations.