KingShine(SZ:300903) Zheng Quan Zhi Xing·2025-08-14 12:16Group 1 - The company, Guangdong Kexiang Electronic Technology Co., Ltd., plans to issue shares to specific investors to enhance its capital strength and profitability, in line with national policies promoting technological innovation and strategic emerging industries [1][2][3] - The PCB industry is entering a new growth cycle driven by the recovery of demand in consumer electronics and the acceleration of AI applications, with a projected global PCB market value of $73.6 billion in 2024, reflecting a 5.8% year-on-year increase [3][4][5] - The company aims to upgrade its production capabilities to meet the increasing demand for high-end server PCBs, particularly in the context of AI's rapid development, which is expected to drive significant growth in the high-end server PCB market [6][7] Group 2 - The company plans to invest approximately RMB 249.13 million in upgrading its high-end server PCB production line, as existing funds are insufficient to meet the project's financial requirements [8][9] - The issuance of shares is expected to alleviate cash flow pressures associated with the upgrade of PCB manufacturing capabilities for high-end servers and optical modules, while also optimizing the company's capital structure [10][11] - The company anticipates that the new projects funded by this issuance will create new revenue and profit growth points, thereby improving asset returns and cash flow [12][13] Group 3 - The company will issue shares to no more than 35 specific investors, including qualified institutional investors and other eligible entities, ensuring compliance with regulatory requirements [10][11] - The pricing of the shares will be based on the average trading price over the 20 trading days prior to the issuance date, with a minimum price set at 80% of this average [12][13] - The issuance process has been authorized by the company's annual general meeting and complies with relevant laws and regulations, ensuring its legality and feasibility [14][15] Group 4 - The company has conducted a thorough analysis of the potential dilution of immediate returns due to the share issuance and has proposed measures to mitigate this impact, including optimizing business processes and enhancing operational efficiency [23][24] - The company has committed to maintaining a stable profit distribution policy over the next three years to ensure shareholder returns, particularly for minority shareholders [25][26] - The overall strategy of the company aims to strengthen its core competitiveness and improve profitability through the successful implementation of the funded projects [24][25]