Lanshi Heavy Equipment: Received the Gansu Securities Regulatory Bureau's Preliminary Notice of Administrative Penalty

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Lanshi Heavy Equipment Announcement, the company, its controlling shareholder Lanshi Group, and related parties received the “Administrative Penalty Notice of Prior Notification” issued by the Gansu Securities Regulatory Bureau.
Upon investigation, from 2020 to 2024, the company engaged in non-operational capital occupation with Lanshi Group and failed to disclose it in the annual report, resulting in significant omissions in the periodic reports; at the same time, due to untimely accounting treatment, the bank deposits were artificially inflated by approximately 1.04B yuan and 807 million yuan in the 2023 and 2024 semi-annual reports, respectively.
The Gansu Securities Regulatory Bureau plans to issue a warning to the company and impose a fine of 3 million yuan, and to Lanshi Group with a fine of 4 million yuan; related responsible personnel will be given warnings and corresponding fines.
The company stated that this matter does not involve any major illegal violations that would lead to mandatory delisting, and current production and operations are normal.

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