Industrial Securities(SH:601377) Zheng Quan Zhi Xing·2025-07-14 09:18Summary of Key Points Core Viewpoint The company is planning to change the use of part of the funds raised from its 2021 private placement to invest in a new production base in Thailand, shifting from the original project in Xiamen due to changes in market conditions and strategic focus. Group 1: Fundraising and Project Overview - The company raised a total of RMB 279.54 million from a private placement of 10,017,513 shares at a price of RMB 6.46 per share, with the funds deposited in a dedicated account [1] - The original project, the Xiamen Phase IV Factory construction, had a total investment of RMB 244.93 million, with an expected internal rate of return of 16.55% [3][4] - As of July 8, 2025, the remaining funds for the Xiamen project amount to RMB 265.23 million, of which RMB 150.48 million is proposed to be redirected to the Thailand production base project [2] Group 2: Reasons for Change - The delay in the Xiamen project was attributed to public health events and changes in the external construction environment, alongside intensified market competition [4] - The company has prioritized the construction of production bases in Chengdu and Hubei, leading to a further slowdown in the Xiamen project [4] - The shift to the Thailand project aims to enhance the company's competitiveness and operational efficiency in response to evolving market demands [5][6] Group 3: New Project Details - The Thailand production base project is expected to have a total investment of RMB 177.31 million, with RMB 150.48 million sourced from the redirected funds [8][9] - The project is strategically located in Thailand's Eastern Economic Corridor, which offers logistical advantages and a favorable investment environment [9][10] - The construction period for the Thailand project is estimated at 36 months, with projected annual revenue of RMB 78.7 million after reaching full capacity [12] Group 4: Approval and Oversight - The change in fundraising project has been approved by the company's board and supervisory committee and is pending shareholder approval [3][16] - The company has completed necessary registrations and is in the process of obtaining required permits for the Thailand project [15]