Wuxi Zhenhua(SH:605319) Zheng Quan Ri Bao·2025-06-17 16:09Core Viewpoint - Wuxi Zhenhua plans to issue convertible bonds totaling 520 million yuan to fund the "Langfang Zhenhua Quanjing Shen Automotive Parts Project" and supplement working capital, aiming to enhance localized production capacity in the Beijing-Tianjin-Hebei region [2][3]. Group 1: Project Details - The total investment for the "Langfang Zhenhua Quanjing Shen Automotive Parts Project" is 648 million yuan, with 420 million yuan sourced from the bond issuance [2]. - The project will be implemented by Wuxi Zhenhua's wholly-owned subsidiary in Langfang, focusing on automotive stamping and welding components, and is expected to achieve an annual production capacity of 500,000 sets of automotive parts [2][3]. Group 2: Financial Projections - Upon completion, the project is projected to generate an annual revenue of 803 million yuan (excluding tax), with a post-tax internal rate of return of 12.78% and a payback period of 7.74 years [3]. - The company anticipates a significant increase in business revenue in the Beijing-Tianjin-Hebei region in 2024, supported by confirmed customer intentions and orders for the new capacity [3]. Group 3: Market Position and Strategy - The Beijing-Tianjin-Hebei region is a key automotive industry hub in China, with a concentrated customer base including major manufacturers like Li Auto and Xiaomi Auto [3]. - The project aims to enhance the company's ability to provide localized support to automotive manufacturers, improving delivery efficiency and reducing transportation costs [4]. - Wuxi Zhenhua is focused on the automotive parts sector, with its main revenue source being the stamping parts business, which is expected to generate 1.484 billion yuan in 2024, accounting for 61.98% of total revenue [5].