Linzhou Heavy Machinery terminates private placement, reallocates funds

Linzhou Heavy Machinery Group (SZSE:002535) is terminating its previously planned private placement investment in its "Industrial Robot Production (Phase One) Project" and will instead use the remaining funds, including interest, to permanently supplement the company's working capital, according to a statement from Huatai United Securities, the lead underwriter. Originally intended to enhance market competitiveness, this strategic shift aims to mitigate investment risks amid changing market conditions. The initial private placement, approved in 2015, raised approximately RMB 1.11 billion, net of expenses. Roughly RMB 10.19 million had been earmarked for the robot project. The reallocation is expected to optimize the company's asset structure, alleviate short-term liquidity pressures, and support core business development by financing raw materials and repaying bank loans. This decision was approved by Linzhou Heavy Machinery's board of directors and supervisory board, pending shareholder approval.