LiuGong Completes Related-Party Disclosure Remediation, Posts H1 Revenue of RMB 20.674 Billion
LiuGong received an administrative penalty notice from the Guangxi regulator on August 7, 2026, for failing to timely review and disclose related-party transactions with Liuzhou Bank, a subsidiary of its indirect controlling shareholder. The company has completed remediation and disclosed its 2026 interim results, showing H1 revenue of RMB 20.674 billion, up 13.71% year on year, and net profit attributable to shareholders of RMB 1.063 billion, down 13.55%.
LiuGong received an administrative supervision measure decision notice from the Guangxi Securities Regulatory Bureau on August 7, 2026, regarding its failure to timely review and disclose related-party transactions. The company has completed remediation and published the relevant reports.
An investigation found that between January and March 2026, LiuGong did not timely review or disclose related-party transactions with Liuzhou Bank Co. , Ltd. , a subsidiary of its indirect controlling shareholder Guangxi State-owned Capital Operation Group. This violated the Administrative Measures for Information Disclosure by Listed Companies. The Guangxi regulator ordered LiuGong to rectify the issue and imposed supervisory talks on Zheng Jin, Luo Guobing, and Huang Hualin, with records placed in the securities and futures market integrity archive.
The remediation report shows that LiuGong submitted the relevant proposals to the 12th meeting of the 10th board of directors and the 2025 annual shareholders' meeting on April 23-24 and May 19, 2026, respectively, where they were approved, and the related announcements have been publicly disclosed. The company stated that remediation of the related-party transaction issue has been completed and published a continuous rectification plan, including management warnings and related-party transaction screening, establishing a communication mechanism with Guangxi State-owned Capital Operation Group, improving the related-party transaction management system, formulating training plans, and regular communication with regulators.
On the same day, LiuGong disclosed its 2026 interim financial report. In the first half of the year, the company achieved total operating revenue of RMB 20.674 billion, up 13.71% year on year; net profit attributable to shareholders of RMB 1.063 billion, down 13.55%; net profit attributable to shareholders excluding non-recurring items of RMB 935 million, down 18.44%; and operating cash flow of RMB 98 million, down 78.59%. By product, earthmoving machinery accounted for 65.14% of total revenue, with gross margin down 4.61 percentage points from the same period in 2025.