Linzhou Heavy Machinery adds detail to factoring financing plan

Linzhou Heavy Machinery Group (SZSE:002535) has released a supplementary announcement concerning its accounts receivable factoring financing business. The company, aiming to address its production and operating capital needs and expand its financing channels, will transfer some of its accounts receivable from Linzhou Heavy Machinery Mining Construction Engineering Co., Ltd. to Zhongyuan Commercial Factoring Co., Ltd. for factoring financing. The financing amount is CNY4,500,000 with a term of 12 months. The arrangement is a recourse factoring arrangement with interest to be determined by contract. Additionally, Linzhou Heavy Machinery announced that controlling shareholder, Guo Xiansheng, has completed the release of 24,200,000 shares from pledge and pledged 21,900,000 shares.