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]