Sinomach Finance Company Limited was fined 400,000 yuan for inaccurate risk classification of certain loans and failure to truthfully reflect asset quality, while responsible personnel in relevant departments were given warnings. Linhai Co., Ltd. received a notification letter from Sinomach Finance on August 14, 2026, and has initiated risk prevention and handling procedures, urging Sinomach Finance to explain the situation, assess risks, and formulate a rectification plan. Sinomach Finance will pay the fine on schedule and implement rectification. This matter will not have a material impact on its daily operations or the financial services it provides to Linhai Co., Ltd., and the deposit and loan business between the two parties will also be unaffected. In the first quarter of 2026, Linhai Co., Ltd. achieved revenue of 326 million yuan and net profit attributable to the parent company of 4.16 million yuan.
Linhai Co LtdLinhai received notification of fine but stated no material impact on operations or financial services.
Sinomach Finance fined 400,000 yuan for inaccurate loan risk classification and must rectify.
