Core Viewpoint - Linzhou Heavy Machinery is facing multiple crises, including financial misconduct, failed fundraising projects, and significant shareholder inequities, raising concerns about its operational integrity and future prospects [1][2][3][4]. Financial Misconduct - The company's financial compliance issues date back to 2017, with the China Securities Regulatory Commission revealing that Linzhou Heavy Machinery inflated profits by 48.72% through fictitious subsidiaries and improper accounting practices [2]. - Between 2020 and 2021, the company provided 874 million yuan to enterprises controlled by its actual controller without proper disclosure, constituting false records [2]. Failed Fundraising Projects - A non-public offering in 2015 aimed to raise 1.1 billion yuan for two projects, but after ten years, only 520.7 million yuan was invested, with 95% of the funds used to supplement working capital [3]. - The oil and gas project was terminated shortly after fundraising due to falling international oil prices, while the robotics project faced technical challenges and was officially halted in 2025 [3]. Shareholder Inequities - Since 2015, the company has not issued cash dividends, accumulating undistributed profits of -2.03 billion yuan, while the actual controller's family has cashed out approximately 400 million yuan through share reductions [4]. - The current high pledge rate of 77.64% raises concerns about the family's financial stability, as they may resort to a cycle of pledging and refinancing to maintain liquidity [4]. - The recent 600 million yuan fundraising involves significant discounts for the actual controller's family, potentially disadvantaging minority shareholders [4].