Champion Asia(SH:603386) Zheng Quan Zhi Xing·2025-07-06 16:14Core Viewpoint - The company has faced multiple delays in its fundraising project due to various market and economic factors, leading to a cautious approach in capital investment and project implementation [1][2][3] Group 1: Fundraising Project Delays - The company raised a net amount of 184 million RMB from a non-public stock issuance in 2020, intended for an 800,000 square meter smart interconnected high-precision circuit board project, which has been delayed multiple times, now expected to complete by December 2025 [1] - The project has seen a total investment of 23 million RMB in 2024, with 65 million RMB of the raised funds still unreturned as of May 2024 [1] - The company’s monetary funds and long-term borrowings totaled 518 million RMB by the end of 2024 [1] Group 2: Market Environment and Business Development - The consumer electronics market saw a decline of 2.37% in 2023, with a projected compound annual growth rate (CAGR) of only 2.25% from 2023 to 2028, significantly lower than the global electronics CAGR of 5.7% [2] - The company’s products are primarily used in consumer electronics and renewable energy sectors, facing intense competition and longer product certification cycles [2][3] - The company has been cautious in capital investments since Q4 2021, slowing down project implementation to mitigate adverse impacts on performance due to market conditions [3] Group 3: Financial Performance - The company reported a revenue of 234.72 million RMB in 2024, down 3.30% year-on-year, with a net loss of 15.44 million RMB, a significant decline of 325.20% compared to the previous year [5] - The company’s performance has been under pressure due to macroeconomic factors, leading to a cautious approach in project funding and execution [5][6] Group 4: Fund Utilization and Compliance - The company has utilized part of the raised funds for temporary working capital, with a total of 160 million RMB returned to the special account by the end of 2023 [10][12] - The company has ensured that the use of funds complies with regulations, with no evidence of misappropriation or violation of fund usage rules [14]