NanFang Precision(SZ:002553) Zheng Quan Zhi Xing·2025-05-16 14:02Core Viewpoint - Jiangsu Southern Precision Engineering Co., Ltd. is issuing A-shares to specific investors, which may dilute immediate returns, and the company has outlined measures to mitigate this impact [1][2][6]. Financial Impact Analysis - The total amount of funds raised from this issuance is estimated to be 201.76 million yuan, with an assumed issuance price leading to approximately 12.04 million shares being issued [2][3]. - The company anticipates a 10% increase in net profit attributable to shareholders in 2025 compared to 2024, with pre-dilution earnings per share (EPS) estimated at 0.07 yuan and post-dilution EPS at 0.31 yuan [3][5]. - If net profit remains flat compared to 2024, the EPS figures would remain unchanged at 0.07 yuan pre-dilution and 0.31 yuan post-dilution [5]. Necessity and Feasibility of the Issuance - The funds raised will be used for projects that enhance the company's core competitiveness and sustainable development capabilities [6][8]. - The company operates in precision components, serving various sectors including automotive and industrial machinery, which supports the rationale for the issuance [6][8]. Project Relationship with Existing Business - The funds will be allocated to projects related to the company's existing operations, specifically in precision braking and transmission components, which aligns with its strategic goals [7][8]. Human Resources, Technology, and Market Readiness - The company has a well-established team with extensive experience in precision machinery, ensuring effective project implementation [9]. - It has a strong technical foundation with over 170 R&D personnel and more than 150 patents, supporting innovation and product development [9]. - The company has built a solid market presence and customer relationships, which will facilitate the successful execution of the fundraising projects [9]. Measures to Mitigate Dilution of Immediate Returns - The company plans to enhance production and sales of existing products to improve profitability [10]. - Governance structures will be strengthened to ensure shareholder rights and effective decision-making [10]. - The company will expedite project investment and ensure efficient use of raised funds [11]. - A profit distribution system will be established to reinforce investor return mechanisms [12]. Commitments from Key Stakeholders - The controlling shareholders and management have made commitments to ensure the execution of measures to mitigate the dilution of immediate returns [12].