Lanzhou LS Heavy Equipment Co., Ltd. (603169.SH) subsidiary Heavy Machinery Company plans to increase capital and expand shares to introduce strategic investors.

Lanzhou LS Heavy Equipment Co., Ltd. (603169.SH) issued an announcement that its wholly-owned subsidiary, Lanzhou Lianshi Heavy Industry Co., Ltd. (referred to as "Heavy Industry Company"), will introduce up to 5 strategic investors through public listing and is expected to increase its registered capital by 43 million yuan. The total amount of this capital increase will not exceed 130 million yuan. After the capital increase is completed, the total equity held by strategic investors in the Heavy Industry Company will not exceed 31%. The company has waived its priority subscription right for this capital increase. The introduction of strategic investors through this capital increase and expansion by the Heavy Industry Company is in line with the company's development strategy and long-term planning. It will help to strengthen the company's technological research and development and product innovation capabilities as a national level specialized and innovative "little giant" enterprise, optimize the company's equity structure, continuously enhance the company's core competitiveness, and promote the Heavy Industry Company's leapfrog development.