SANY Heavy Industry Co., Ltd. announced that its board has approved the adoption of China Accounting Standards for Business Enterprises (CASBE) as the sole basis for preparing and disclosing financial statements from the interim period ending 30 June 2026. The decision aligns with Hong Kong Stock Exchange rules that permit mainland-incorporated issuers to report exclusively under CASBE when the standards substantially converge with International Financial Reporting Standards (IFRS).

The switch eliminates the need for parallel IFRS statements and is expected to streamline disclosure procedures and lower preparation costs without materially affecting the Group’s financial position or results.

To complete the transition, the company proposes to terminate the appointment of Ernst & Young as its H-share financial report auditor. Subject to shareholder approval at an extraordinary general meeting scheduled for 14 July 2026, domestic auditor Ernst & Young Hua Ming LLP—already engaged for A-share reporting—will become the sole auditor for both A- and H-share financial statements under CASBE.

Following discussions with both audit firms, total audit and internal control fees for 2026 are estimated at approximately RMB 4.20 million, with adjustments possible if the Group’s business scope changes. Ernst & Young has confirmed that there are no matters regarding its termination that require notification to security holders, and both the audit committee and the full board have unanimously endorsed the proposed changes.