Linzhou Heavy Machinery announces equipment lease, share repurchase deal

Linzhou Heavy Machinery Group plans to sign a repurchase agreement in connection with a financing lease for hydraulic supports and scraper conveyors worth CNY 148,370,088.94. The company will sell these products to China Coal Technology and Engineering Group Financial Leasing Co., Ltd., which will then lease them to Shaanxi Yihua Mining Development Co., Ltd. for a five-year term. Linzhou Heavy Machinery will receive timely payments from the lessor, while the lessee will make phased rental payments. The repurchase obligation for Linzhou Heavy Machinery will not exceed CNY 160 million.

The financing lease aims to broaden sales channels and enhance market penetration, improving operating capital efficiency. The board of directors approved the repurchase agreement on December 24, 2025, with all eight directors voting in favor, as detailed in the Sixth Board of Directors’ Twenty-Eighth (Interim) Meeting Resolution.

This transaction is not considered a related-party transaction and falls within the board's approval authority, therefore not requiring shareholder approval. Linzhou Heavy Machinery anticipates a positive impact on its total operating revenue and net profit without affecting its operational independence.