Core Viewpoint - Linzhou Heavy Machinery Group Co., Ltd. plans to issue A-shares to specific investors to raise funds for operational needs and debt repayment, aiming to enhance its financial stability and competitive edge in the coal machinery industry [1][8]. Group 1: Issuance Details - The company intends to issue up to 180 million shares at a price of 3.13 yuan per share, which is not less than 80% of the average trading price over the previous 20 trading days [2][9]. - The total amount to be raised is expected to be no more than 600 million yuan, with all net proceeds allocated to supplement working capital and repay loans [11][25]. - The issuance will be subject to approval from the Shenzhen Stock Exchange and the China Securities Regulatory Commission [1][13]. Group 2: Financial Context - As of the end of 2024, the company's short-term borrowings were significant, with debt ratios of 90.00%, 86.21%, and 84.94% over the past three years, indicating a high level of financial leverage [8][25]. - The funds raised will help reduce the company's debt ratio and improve its capital structure, thereby alleviating cash flow pressure and enhancing risk resilience [25][26]. Group 3: Relationship with Investors - The shares will be subscribed by controlling shareholders and their concerted actors, specifically Mr. Guo Hao and Mr. Guo Chuan, constituting a related party transaction [12][19]. - The shares acquired will be subject to a 36-month lock-up period post-issuance, preventing any transfer during this time [11][22]. Group 4: Industry Outlook - The coal industry remains a critical component of China's energy security, with stable production expected to provide ongoing demand for coal machinery [8]. - The company is positioned to benefit from the anticipated increase in coal production capacity, projected at approximately 150 million tons per year from 2025 to 2026 [8].

Group 1 - The company plans to raise a maximum of 496.8 million yuan through a private placement of A-shares to improve its capital structure and reduce financial costs [1][2] - The raised funds will be used entirely to supplement working capital and repay loans, addressing the company's liquidity issues and debt pressure [2][4] - The company's asset-liability ratio at the end of 2022, 2023, and 2024 indicates a need for capital structure improvement due to high debt levels [1] Group 2 - The issuance will lead to an increase in total assets and net assets, resulting in a decrease in the asset-liability ratio and an optimized capital structure [2][4] - The company operates in three main business areas: environmental protection and agricultural equipment, comprehensive environmental governance, and energy storage and dual-carbon innovation [2] - The ongoing national push for ecological civilization and green low-carbon industries is expected to drive rapid growth in the company's business sectors [2] Group 3 - The company has established a modern corporate governance structure and a robust internal control environment to manage the raised funds effectively [3] - The funds will help meet the financial demands of the company's expanding and upgrading operations, promoting sustainable and healthy development [3][4] - The issuance aligns with national industrial policies and the company's strategic development direction, benefiting all shareholders [3][4]

Core Viewpoint - The company has decided to terminate certain fundraising projects and redirect the remaining funds to supplement its working capital permanently [1] Group 1: Project Termination - The company will terminate the following projects: "Vietnam Production Base for Consumer Electronics Structural Components," "Vietnam Production Base for Heat Dissipation Components," and "Renovation Project for Consumer Electronics Structural Components Production Base" [1] - The total remaining fundraising amount to be redirected is 329 million yuan, which includes interest income generated from the fundraising account and after deducting fees and amounts already replaced with self-owned bank acceptance [1] Group 2: Financial Impact - The amount to be permanently supplemented to working capital represents 30.47% of the total fundraising amount [1] - Following the transfer of funds, the company will close the relevant fundraising account, and the regulatory agreement with the sponsor and the bank will also be terminated [1]