Taiyuan Heavy Industry to receive risk warning after financial restatement

Taiyuan Heavy Industry (SSE:600169) will implement an "other risk warning" (ST) on its A-shares, effective November 4, 2025, with a one-day trading suspension on November 3, 2025. This follows an administrative penalty pre-notification from the Shanxi Regulatory Bureau of the China Securities Regulatory Commission (CSRC). The penalty stems from false records in the company's annual reports from 2014 to 2018, and in 2020 and 2021, relating to premature revenue recognition and misstated financing lease expenses for the Lataban Wind Power Project.

The financial misstatements led to a shift from profit to loss in the 2014 and 2018 financial statements. In 2014, net profit was overstated by 155,346,528.67 yuan, changing from a profit of 33,226,422.20 yuan to a loss of 122,120,106.47 yuan. In 2018, net profit was overstated by 120,753,902.08 yuan, changing from a profit of 39,964,537.21 yuan to a loss of 80,789,364.87 yuan. Several executives received warnings and fines ranging from 500,000 yuan to 2,000,000 yuan, with some facing lifetime or ten-year market bans.

The company's board stated that the underlying projects related to the misstatements were completed in 2021, and associated assets were divested in 2024, mitigating future operational impact. Taiyuan Heavy Industry will revise and restate its financial reports and is committed to improving corporate governance and information disclosure.