Tongyu Heavy Industry faces scrutiny, ownership change amid accounting errors

Tongyu Heavy Industry Co., Ltd. faced regulatory action after disclosing accounting errors on April 29, 2025. This led to a downward adjustment of its inventory and undistributed profits by 155m yuan for 2022 and 2023. The Shenzhen Stock Exchange issued a regulatory letter and the Shandong Securities Regulatory Bureau sent a warning letter, citing violations of listing rules. New Century Ratings noted that the former management team fully compensated for the inventory discrepancies.

In parallel, Tongyu Heavy Industry experienced a change in its controlling shareholder. On May 6, 2025, Zhuhai Port Holdings Group Co., Ltd. agreed to transfer 15.50% of total share capital to Guohui Capital for 1.34bn yuan. The transfer was completed on August 28, 2025, making Guohui Capital the controlling shareholder with a 20.33% voting rights ratio, and the Shandong Provincial People's Government State-owned Assets Supervision and Administration Commission the ultimate actual controller.

New Century Ratings affirmed Tongyu Heavy Industry's individual credit rating at 'aa-' and its main credit rating at 'AA/stable'. The rating agency will continue to monitor the company’s internal control system and the impact of the ownership change.