ZheJiang Meili High Technology (SZ:300611) Zheng Quan Zhi Xing·2025-07-21 04:13Core Viewpoint - Zhejiang Meili High Technology Co., Ltd. is issuing convertible bonds to raise up to RMB 300 million to support its business expansion and enhance its market competitiveness in the automotive parts industry, particularly in high-end spring products and precision injection molding [13][16]. Company Overview - Zhejiang Meili High Technology Co., Ltd. was established on May 16, 2002, with a registered capital of RMB 2,110.7468 million. The company focuses on the research, production, and sales of high-end spring products and precision injection parts, primarily serving the automotive industry [13][14]. - The company has experienced significant growth, with revenue increasing from RMB 1.087 billion to RMB 1.604 billion over the past three years, representing a growth rate of 21.44% [13][15]. Purpose of the Bond Issuance - The issuance of convertible bonds aligns with national development strategies and industry trends, aiming to optimize business layout and maintain competitive advantages [16]. - The funds raised will be used for projects that enhance production capacity and operational efficiency, particularly in response to the growing demand in the automotive sector [16][18]. Financial Performance and Dividend Policy - The company has a proactive profit distribution policy, prioritizing cash dividends. In recent years, it has distributed cash dividends totaling RMB 41.69 million, exceeding its average annual distributable profit of RMB 36.58 million by 113.96% [5][7]. - The company aims to maintain a minimum cash dividend of 20% of the distributable profit when conditions allow [4][5]. Risk Factors - The convertible bonds are rated AA- by Shanghai New Century, indicating a stable outlook. However, the bonds are unsecured, which may increase repayment risks if the company's operational performance deteriorates [8][9]. - The company faces potential risks related to market fluctuations, operational management, and the timely realization of project benefits, which could impact its financial stability and ability to meet bond obligations [8][9][10].