CDL(SZ:300686) Chang Jiang Shang Bao·2025-05-15 23:23Core Viewpoint - The termination of three fundraising projects by Zhihua Technology raises questions about the company's operational decisions and financial management, especially given the significant losses reported in recent years [2][4][8]. Group 1: Fundraising and Project Termination - On May 12, Zhihua Technology announced the termination of three fundraising projects, reallocating the remaining 329 million yuan to supplement working capital permanently [2][4]. - The three projects were part of a 1.079 billion yuan fundraising effort initiated in late 2020, with approximately 174 million yuan already invested over four years [2][4][5]. - The terminated projects include the construction of production bases in Vietnam for electronic components and heat dissipation components, with investment progress at 46.78%, 25.26%, and 30.12% respectively [5][6]. Group 2: Financial Performance - Zhihua Technology has faced operational challenges, reporting a cumulative net loss of 628 million yuan from 2022 to 2024, with continued losses in the first quarter of this year [2][9]. - The company has not distributed cash dividends to shareholders since 2022, reflecting its ongoing financial difficulties [3][10]. - Despite a slight revenue increase in the first quarter of this year, the company continues to struggle with low gross margins and high operational costs, leading to persistent losses [9][10]. Group 3: Market Context - The consumer electronics industry has experienced cyclical fluctuations, impacting Zhihua Technology's performance and leading to a weaker-than-expected recovery in demand [2][9]. - The company’s revenue has shown volatility, with a decline in both revenue and net profit since its IPO in 2017, highlighting ongoing challenges in achieving stable growth [8][9].