Group 1 - The company held its 12th meeting of the third supervisory board on June 3, 2025, with all three supervisors present, complying with relevant laws and regulations [1] - The supervisory board approved the proposal to conclude certain fundraising projects and permanently supplement working capital with the remaining funds, ensuring no harm to the interests of the company and its shareholders [1] - The proposal regarding the establishment of a wholly-owned subsidiary abroad was also approved, aimed at enhancing the company's overseas market development and international cooperation, with funding sourced from the company's own funds [2]

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].