Wuxi Zhenhua(SH:605319) Chang Jiang Shang Bao·2025-05-19 23:28Core Viewpoint - Wuxi Zhenhua (605319.SH) accelerates its production expansion by issuing convertible bonds to raise up to 520 million yuan for automotive parts projects and working capital [1][2] Group 1: Company Overview - Wuxi Zhenhua, established in 1989, specializes in the design, research and development, manufacturing, and sales of automotive stamping and welding parts, as well as related molds and assembly processing services [2] - The company has established nine production bases, forming a multi-location production layout across Wuxi, Shanghai, Zhengzhou, Ningde, Wuhan, and Langfang [1][3] Group 2: Financial Performance - In 2024, Wuxi Zhenhua achieved revenue of 2.531 billion yuan, a year-on-year increase of 9.23%, and a net profit of 378 million yuan, up 36.30% [4] - In Q1 2025, the company reported revenue of 600 million yuan, a 22.5% increase year-on-year, and a net profit of 94.54 million yuan, up 22.2% [4] Group 3: Investment and Expansion Plans - The company plans to use 1 billion yuan of the raised funds to supplement working capital, while the remaining will be allocated to the Langfang Zhenhua automotive parts project [2] - The project is expected to have a post-tax internal rate of return of 12.78% and a payback period of 7.74 years, with an anticipated production capacity of 500,000 sets of automotive parts annually [3] Group 4: R&D and Technological Advancements - Wuxi Zhenhua has seen a consistent increase in R&D expenses from 47.886 million yuan in 2020 to 62.817 million yuan in 2024, totaling 279 million yuan over five years [5] - The company holds 148 patents, including 19 invention patents, showcasing its strong market competitiveness [5]