Linzhou Heavy Machinery secures bank credit, addresses related-party loan

Linzhou Heavy Machinery Group Co., Ltd. held its Sixth Board of Directors' Twenty-Seventh (Provisional) Meeting on December 8, 2025, approving several key financial measures. The company plans to apply for comprehensive credit facilities totaling 1,628,000,000 yuan from eleven banks in 2026 to meet operational and development needs. The final approved credit amount will be subject to each bank's actual approval.

In a separate but related resolution, the board also approved a related-party loan from controlling shareholder Mr. Guo Xiansheng and his affiliates, not exceeding 500,000,000 yuan. This loan, with an annual interest rate of 8%-10% and a one-year term, is intended to address the company's working capital requirements and relieve daily financial pressure. The independent directors' specialized committee has reviewed and approved this transaction.

Additionally, the board approved the proposed change of accounting firm for the 2025 annual financial statements and internal control audits. The company anticipates holding its third extraordinary general meeting in 2025 to seek shareholder approval for these significant decisions.