Core Viewpoint - Jiangsu Benchuan Intelligent Circuit Technology Co., Ltd. plans to issue convertible bonds to raise funds for production projects and working capital, aiming to enhance its production capacity and market competitiveness in the PCB industry [1][2][3]. Company Overview - Jiangsu Benchuan was established on August 23, 2006, and listed on August 5, 2021, with a registered capital of 77.2983 million RMB [17]. - The company specializes in the production and processing of various electronic components, including high-density interconnect boards and flexible printed circuit boards [17][18]. Fundraising Purpose - The funds raised will be used for the construction of production bases in Zhuhai and Thailand, aimed at increasing annual production capacity by 550,000 square meters [2][3]. - The company aims to improve production efficiency and precision through advanced automated production lines, thereby enhancing its ability to meet customer demands and reduce delivery times [24][25]. Market Context - The global PCB industry is projected to grow, with a total market value of 73.565 billion USD in 2024, reflecting a 5.8% increase from the previous year [18][19]. - China remains the largest PCB production base, accounting for 56% of the global market, while Southeast Asia is expected to grow rapidly, with a compound annual growth rate of 12.4% from 2024 to 2029 [19][20]. Industry Demand - The demand for PCBs is driven by the rapid growth of downstream industries such as electric vehicles and telecommunications, with significant increases in production and sales expected [20][21][22]. - The company is positioned to capitalize on emerging markets related to AI, low-altitude economy, and robotics, which are anticipated to create substantial demand for PCB products [22][23]. Financial Performance - The company has experienced fluctuations in net profit, with a reported net profit of 34.0522 million RMB in 2022, followed by a loss in 2023 [8][9]. - The gross profit margin has declined significantly, indicating potential challenges in maintaining profitability amidst increasing competition [7][8]. Risk Factors - The company faces risks related to project implementation, including potential underperformance of investment projects and challenges in capacity absorption due to market fluctuations [2][3][4]. - International trade disputes and changes in policies may impact the company's export performance, particularly in key markets like the US and Europe [4][5]. Profit Distribution Policy - The company has established a profit distribution policy that prioritizes cash dividends, aiming for a minimum of 30% of average distributable profits over the past three years to be distributed in cash [10][11]. - Recent profit distribution has included no cash dividends in 2022, a cash dividend of 22.8985 million RMB in 2023, and a proposed cash dividend of 7.6328 million RMB for the first half of 2024 [14][15].
本川智能: 向不特定对象发行可转换公司债券募集说明书(申报稿)