Reporter｜Mayr

Taiyuan Heavy Industry (ST Taiyuan Heavy, 600619.SH) has fallen for two consecutive days.

On November 4th, Taiyuan Heavy Industry saw a direct price fall by 5.04% with a closing price of 2.64 yuan per share and a total market value of about 8.8 billion yuan. On November 5th, the company's stock price fell again at the start of trading.

The stock price has suffered a heavy hit, which is largely related to a recent announcement from Taiyuan Heavy Industry Co.

On November 1st, Taiyuan Heavy Industry Co., Ltd. issued an announcement that the company and related parties had received the Administrative Punishment Advance Notice issued by the Shanxi Supervision Bureau of the China Securities Regulatory Commiss

The content of the Notice shows that the case of Taiyuan Heavy Industry's suspected information disclosure violations has been investigated and completed by the Shanxi Supervision Bureau, and administrative penalties have been imposed according to la

According to interface news statistics, the "Notice" issued fines of 8.95 million yuan to 12 relevant senior executives of Taiyuan Heavy Industry at the time. In addition, the fines of 8 million yuan were imposed on Taiyuan Heavy Industry, involving

Due to the violation of relevant regulations by the Notice, Taiyuan Heavy Industry Co., Ltd. was suspended from trading on November 3, and its A-share abbreviation changed to ST Taiyuan Heavy.

In July this year, Taiyuan Heavy Industry Group disclosed that it had received an 'Informal Complaint' from the China Securities Regulatory Committee.

According to the latest notice, Taiyuan Heavy Industry is suspected of falsely recording in its annual report.

In 2012, Taiyuan Heavy Industry Co., Ltd. collaborated with Heilongjiang Ruihao Technology Group Co., Ltd. to develop the 300 MW wind power project in La Dan Pao, Duirboté Mongolian Autonomous County, Heilongjiang Province. Taiyuan Heavy Industry was

Taiyuan Heavy Industry falsely recorded its annual reports for 2014-2018, 2020, and 2021 by overstating the income from wind power generation equipment of the La Tan project by confirming them ahead of time and carrying over costs while undercounting

Among them, the overstated operating income in 2014 was 757 million yuan, accounting for 8.39% of the operating income disclosed in the current period; the overstated total profit was 155 million yuan, accounting for 763.89% of the total profit discl

In 2015, Taiyuan Heavy Industry understated its revenue by 44 million yuan and overstated its total profit by 13 million yuan, accounting for 34.83% of the total profit disclosed in the current period.

In 2016, the company overstated its total profit by 0.019 million yuan, accounting for 0.1% of the total profit disclosed in that period. In 2017, it understated revenue by 185 million yuan and overstated total profit by 0.17 million yuan, accounting

In 2018, Taiyuan Heavy Industry Co., Ltd. also underreported its operating income and overstated its profit.

In 2020-2021, the company's revenue and profits were understated. Specifically, the total profit was understated by RMB 46 million in 2021, accounting for 25.3% of the total profit disclosed in that period.

The notice also pointed out that Taiyuan Heavy Industry Co., Ltd. included some financial data of an individual year in its application documents for non-public issuance of shares in 2020, which constituted false records.

Taiyuan Heavy Industry's aforementioned actions are suspected of violating relevant Securities Laws. The Informative Letter stated that the aforementioned illegal facts are evidenced by relevant announcements, annual reports, financial information, b

In addition, the "Notice" also listed issues related to 12 senior executives, including the then chairman, general manager, director, and chief financial officer of Taiyuan Heavy Industry Co., Ltd.

The Shanxi Regulatory Authority has instructed Taiyuan Heavy Industry to make corrections, issued a warning, and imposed a fine of 8 million yuan. Additionally, 12 relevant personnel were warned, fined, and subjected to market access restrictions for

Zhang Zhide, who was the director and deputy chairman of Taiyuan Heavy Industry at that time, was the directly responsible supervisor of the false records in Taiyuan Heavy Industry's 2014-2018 annual reports and 2020 non-public issuance of stock appl

Taiyuan Heavy Industry said that the final result of the administrative penalty will be subject to the formal administrative penalty decision issued by the Shanxi Securities Regulatory Bureau."The projects involved will be completed in 2021, and all

Taiyuan Heavy Industry Co., Ltd., a state-owned holding company and the core subsidiary of Taiyuan Heavy Machinery Group Co., Ltd. (hereinafter referred to as TYT), used to be a leading company in the wind power industry, but has gradually reduced it

Over the past two years, Taiyuan Heavy Industry and Taihe Group have completed three rounds of business integration in the wind power industry.

At the end of 2023, Taiyuan Heavy Industry Co., Ltd. decided to transfer more than ten wind power projects and related assets to the Taiyuan Iron & Steel Group, involving an amount exceeding 1.4 billion yuan.

In June 2024, Taiyuan Heavy Industry Co., Ltd. transferred its assets related to the Labantao Project to its wholly-owned subsidiary, Chaoyouzhongqi Company, and then transferred the assets related to the manufacture of wind power equipment (tower se

Meanwhile, Taiyuan Heavy Industry has acquired 100% of the equity stake in Shanxi Taizhong Intelligent Equipment Co., Ltd. held by the Taiyuan Heavy Group, with a purchase price of 458 million yuan.

At the end of last year, Taiyuan Heavy Industry Co., Ltd. once again sold its 39.782% equity stake in Taiyuan Heavy Industry New Energy Equipment Co., Ltd. and its full 100% ownership of Dingxiang Nengyu New Energy Co., Ltd. to the Taiyuan Heavy Indu

After this transaction, Taiyuan Heavy Industry's wind power business was basically "fully divested". "Taiyuan Daily" once reported that this is mainly conducive to Taiyuan Heavy Industry's focus on the main business of listed companies and to Taiyuan

For Taiyuan Heavy Industry, the construction of wind farms, investment in operational businesses, and high maintenance costs have resulted in weak profitability and brought certain pressure on its performance. For instance, the Chayouzhongqi company,

In 2023, Taiyuan Heavy Industry Co., Ltd. achieved a net profit of 185 million yuan, which was a decrease of 14.35% year-on-year. In 2024, the net profit reached 195 million yuan, representing a year-on-year increase of 4.17%.

In its semi-annual report this year, Taiyuan Heavy Industry has described its business as being primarily engaged in the general contracting of products and engineering projects for the railway transportation equipment, lifting equipment, excavation

According to the interface news review, in 2023, the Shanxi Regulatory Bureau of the China Securities Regulatory Commission also issued a warning letter and ordered Taiyuan Heavy Industry Group Co., Ltd. to make corrections.

In June 2021, Taiyuan Heavy Industry Co., Ltd. disclosed its plan to transfer 51% of the equity of its subsidiary, Taiyuan Heavy Industry (Tianjin) Binhai Heavy Machinery Co., Ltd., to its controlling shareholder in a related-party transaction. The c

Taiyuan Heavy Industry has not disclosed the occupation of non-operating funds by controlling shareholders and related parties as required, failed to disclose major litigation in a timely manner, and at the same time, there are irregularities in fina

In the first three quarters of this year, Taiyuan Heavy Industry Co., Ltd. achieved a revenue of 7.028 billion yuan, an increase of 9.98% year-on-year, and a net profit of 850 million yuan, an increase of 21.8% year-on-year. As of the end of the peri