Core Viewpoint - Huazhong CNC (300161.SZ) has undergone significant changes in its private placement plan, with the major shareholder, Zhuoer Zhizao, opting out of the subscription, raising market concerns about the implications of this decision [2][3]. Group 1: Changes in Private Placement - The latest revision of the private placement plan indicates that Zhuoer Zhizao will no longer participate in the subscription, which deviates from previous versions where the major shareholder was expected to contribute significantly [2][3]. - The company claims that the withdrawal is primarily to mitigate risks associated with its overseas business potentially being sanctioned, but it also reflects the need to expedite the placement process and the financial strain on Zhuoer Zhizao [2][7]. Group 2: Financial Context and Performance - In March 2023, Huazhong CNC announced a plan to raise up to 1 billion yuan, with Zhuoer Zhizao expected to subscribe for at least 30% of the total shares issued [3]. - The company’s stock price had surged over 300% from 15.64 yuan in 2022 to a peak of 61.92 yuan in 2023, but has since faced a significant decline due to changing market conditions and a projected net profit loss of 304.37% in 2024 [5][6][10]. - The company’s revenue for 2024 is projected at 1.782 billion yuan, a year-on-year decrease of 15.71%, with its robotics segment experiencing a 36.39% decline in revenue [10][13]. Group 3: Shareholder Financial Strain - Zhuoer Zhizao's financial situation appears strained, with high debt levels and significant equity pledges across its listed companies, including a 79.36% debt ratio for Zhuoer Zhilian [7][8]. - The major shareholder's withdrawal from the private placement may also be influenced by the need to reduce regulatory scrutiny and expedite the placement process [7].

Core Viewpoint - The announcement details Wuhan Huazhong Numerical Control Co., Ltd.'s plan to issue A-shares to specific investors, highlighting the potential dilution of immediate returns and the measures to compensate for this dilution [1][4]. Financial Impact Analysis - The company plans to issue 41,726,349 shares, which will increase the total share capital from 198,696,906 to 240,423,255 shares post-issuance [2]. - The projected net profit for 2025 under three scenarios shows a decrease of 10%, remaining stable, and an increase of 10%, with corresponding impacts on earnings per share (EPS) [3][4]. - In the scenario where net profit decreases by 10%, the diluted EPS is projected to be -0.3065, while in the scenario of a 10% increase, it is projected to be -0.2073 [3]. Measures to Compensate for Dilution - The company intends to enhance its capital strength and risk resistance through effective use of raised funds, focusing on improving operational management and internal controls [5][6]. - Specific strategies include strengthening management innovation, improving governance structures, and ensuring effective use of raised funds to protect investor interests [6][7]. Commitments from Management - The board of directors and senior management have committed to fulfilling the measures to compensate for the dilution of immediate returns, with accountability for any losses incurred by investors due to non-compliance [8][9]. - The commitments include adherence to regulatory requirements and ensuring that the compensation measures are linked to the performance of the company [8][9]. Approval and Disclosure - The board has approved the analysis of the dilution impact and the compensation measures in previous meetings, with ongoing disclosures planned in regular reports [9].