Carthane(SH:603037) Zheng Quan Shi Bao Wang·2025-04-18 12:27Core Viewpoint - The company, Kaizhong Co., Ltd., has successfully passed the issuance of convertible bonds to raise up to RMB 308 million, primarily for expanding production capacity and supplementing working capital [1] Group 1: Company Overview - Kaizhong Co., Ltd. specializes in manufacturing automotive components, focusing on advanced products such as chassis suspension system damping elements, lightweight pedal assemblies, and high-performance polyurethane load-bearing wheels [2] - The company has achieved international leading levels in material formulation, product design, and manufacturing technology, holding 151 patents, including 25 invention patents, and has been recognized as a high-tech enterprise and a "specialized, refined, and innovative" enterprise [2] Group 2: Market Position - Kaizhong Co., Ltd. ranks second in the domestic market share for damping elements, with market shares of 33.52% and 2.88% for buffer blocks and top supports, respectively, in the domestic automotive market, and 14.95% and 1.11% globally [2] - The company has established a robust customer base, collaborating with leading domestic automakers such as SAIC Group and BYD, as well as international giants like Volkswagen and Porsche, ensuring a stable and growth-oriented customer structure [3] Group 3: Expansion Plans - The global automotive industry is accelerating towards electrification and intelligence, creating significant growth opportunities for local component manufacturers like Kaizhong Co., Ltd. [4] - The company plans to expand its production capacity to address the increasing demand, with revenue growth from RMB 548 million in 2021 to RMB 739 million in 2023, reflecting a 34.84% increase [4] - The production capacity utilization rates for damping elements and pedals reached 112.12% and 103.18%, respectively, indicating a need for expansion to maintain stable product delivery [4] Group 4: Fund Utilization - The proceeds from the convertible bond issuance will be allocated to the Nantong production base expansion project, which aims to increase the production capacity for polyurethane damping elements to 27 million units and lightweight pedal assemblies to 3.5 million units annually [5] - This expansion is expected to alleviate current capacity constraints and enable the company to seize market opportunities, thereby solidifying and enhancing its industry position [5]