KHtech(SH:603052) Zheng Quan Zhi Xing·2025-06-30 16:26Core Viewpoint - Suzhou Kecuan Electronic Technology Co., Ltd. is planning to issue convertible bonds to raise a total of up to RMB 500 million for its lithium battery new composite material project, which is expected to achieve an internal rate of return of 19.50% and a static investment payback period of 6.70 years [2][3]. Financing Scale and Effectiveness Assessment - The total investment for the lithium battery new composite material project (Phase I) is RMB 748.38 million, with RMB 500 million planned to be raised through this bond issuance [3][4]. - The project is expected to reach full production capacity in the fifth year, with an annual production capacity of 95 million square meters of composite aluminum foil [7][8]. - The financing scale is deemed reasonable based on the company's existing cash flow, funding gaps, and the projected investment needs over the next three years [10][12]. Project Investment Breakdown - The project includes specific investments in engineering construction and equipment procurement, with no allocation for non-capital expenditures exceeding 30% of the total raised funds [4][6]. - The engineering construction costs are estimated at RMB 138.92 million, while equipment procurement costs total RMB 533.01 million, primarily for the purchase of 18 vacuum coating machines [5][6]. Revenue and Profitability Projections - The projected sales prices for the composite aluminum foil are set at RMB 10 per square meter for consumer electronics and RMB 7 per square meter for power batteries, with a planned annual price reduction of 10% starting from the fifth year [12][13]. - The expected revenue from the project is projected to reach RMB 517 million in the fifth year, with cumulative revenues increasing significantly in subsequent years [15]. Cost Structure and Financial Health - The main production costs include direct materials, labor, and depreciation, with careful consideration of production processes and historical data [15]. - The company anticipates a funding gap of approximately RMB 670.40 million, necessitating the bond issuance to cover operational and project-related expenses [10][12].