On the evening of April 24, 2022, Linzhou Heavy Machinery (002535) issued an announcement stating that it had received the "Administrative Penalty Prior Notice" ([2022] No. 2) from the Henan Supervision Bureau of the China Securities Regulatory Commission. The investigation into

On the evening of April 24, 2022, Linzhou Heavy Machinery (002535) issued an announcement stating that it had received the "Administrative Penalty Prior Notice" ([2022] No. 2) from the Henan Supervision Bureau of the China Securities Regulatory Commission. The investigation into the suspected violation of information disclosure laws and regulations has been completed, and administrative penalties are planned to be imposed in accordance with the law. The company and the parties have the right to make statements, defend themselves and request a hearing. If it is established upon review by the China Securities Regulatory Commission, it will be adopted. If you give up, the China Securities Regulatory Commission will make a formal administrative penalty decision.

Linzhou Heavy Machinery (002535)’s alleged illegal behavior is that the company failed to disclose information in a timely manner as required, provided funds to a company controlled by one of the actual controllers and controlling shareholder Guo Xiansheng, and failed to accurately disclose it in regular reports, which constituted a false record. Linzhou Heavy Machinery was fined 1.5 million yuan, Guo Xiansheng was fined 2.7 million yuan, and Cuipu County was fined 500,000 yuan. The company determines that the violations involved in this notification do not involve forced delisting due to major violations.

It is worth noting that this is not the first time that Linzhou Heavy Machinery (002535) has been subject to administrative penalties. It was already punished by the China Securities Regulatory Commission for false statements on August 20, 2020, and then faced investor claims. At present, there has been a successful judgment for investors in the first instance, and the compensation ratio is about 60%. This time, Linzhou Heavy Machinery (002535) "entered the palace for the second time", which means that the scope of claims for damaged investors has expanded.

According to the announcement of Linzhou Heavy Machinery (002535) and the provisions of laws and judicial interpretations, 1. Purchased Linzhou Heavy Machinery (002535) stocks between April 3, 2018 and November 21, 2019, and in 2019 Investors who sold or continued to hold stocks on or after November 22 can initiate claims (which will ultimately be subject to the court’s decision). 2. Investors who bought from January 1, 2020 to November 15, 2021 (including that day, regardless of whether it is a trading day), and then suffered losses due to selling or still holding (subject to subsequent investigation progress Subject to change).