Taiyuan Heavy Industry to correct past errors, overhaul structure

Taiyuan Heavy Industry is addressing significant prior period accounting errors that impacted its financial statements from 2014 to 2021, including cross-period revenue recognition for 2014 and 2016. These corrections will lead to a cumulative reduction in net profit of 32,914.08 million yuan and a decrease in net assets attributable to the parent company of 27,179.69 million yuan, while also necessitating retrospective adjustments to financial reports for 2022, 2023, 2024, and Q1 and H1 2025.

In parallel, the company plans to sell its wholly-owned subsidiary, Shanxi Taiyuan Heavy Industry Coking Equipment Company Limited, to its controlling shareholder, Taiyuan Heavy Machinery Group Company Limited, for 618,108,614 yuan. This transaction, occurring on October 31, 2025, aims to optimize the company's asset structure, enhance asset quality, reduce the asset-liability ratio from 82.86%, and improve profitability by divesting an underperforming coking business segment. The company also projects its routine related-party transactions for 2026 and sets non-financing letter of guarantee limits for its wholly-owned subsidiaries.

Additionally, Taiyuan Heavy Industry proposes to reduce its registered capital by repurchasing and canceling 14.15367 million shares of restricted stock from the 2022 restricted stock incentive plan, decreasing its registered capital from 3,361,256,840 yuan to 3,347,103,170 yuan. All these measures are subject to shareholder approval at the company's fourth extraordinary general meeting in 2025, scheduled for December 22, 2025.