Saurer Intelligent Machinery has responded to an inquiry from the Shanghai Stock Exchange regarding the emphasis-of-matter paragraph in the internal control audit of its 2025 annual report. The company explained related-party transactions including the payment of 7.215 million yuan in guarantee fees to its actual controller Pan Xueping through a third party, and a 3 million yuan rental deposit to related party Jiangsu Jinhong Textile. The company stated that the guarantee fees were for joint and several liability guarantees provided by the actual controller for bank borrowings of the company and its subsidiaries, charged at 1.2 percent per annum, totaling 16.793 million yuan. This rate is slightly below the A-share sample average of 1.21 percent, which ranges from 0.7 to 2.0 percent. Saurer Jiangsu leases factory premises from Jinhong Textile for a term of 10.5 years including six months rent-free, with an average annual rent of 12.4 million yuan, 0.4 percent lower than the local market price. Saurer Changzhou leases factory premises from Jinsheng Industrial at a unit price of 188 yuan per square meter per year, 0.8 percent lower than the surrounding average price. Both leased properties have been delivered and put into use. The company stated that the transactions were based on genuine financing and production needs, with the funds corresponding to clear performance obligations and not constituting non-operational capital occupation. The failure to review the transactions in a timely manner was due to the business departments not synchronizing with the board secretary's office. Supplementary review was completed on April 27, 2026, and the company has since optimized its payment review and information reporting processes, while simultaneously organizing compliance training.
Saurer Intelligent Technology Co Ltd Class ACompany responded to SSE inquiry over untimely review of related-party transactions, indicating regulatory scrutiny and internal control issues.
