NanFang Precision(SZ:002553) Zheng Quan Zhi Xing·2025-08-29 17:47Core Viewpoint - Jiangsu Southern Precision Engineering Co., Ltd. is planning to issue A-shares to specific investors, which may dilute immediate returns, and the company has outlined measures to mitigate this impact [2][3][4]. Financial Impact Analysis - The company estimates that the total amount raised from the issuance will be approximately 187.53 million yuan, with an assumed issuance price of 17.51 yuan per share, leading to an estimated issuance of about 10.71 million shares [4][5]. - The projected net profit attributable to shareholders for 2025 is expected to grow by 10% compared to 2024, resulting in a basic earnings per share (EPS) of 0.34 yuan post-issuance [5][6]. - If the net profit remains flat compared to 2024, the basic EPS would remain at 0.31 yuan post-issuance [6]. Necessity and Feasibility of the Issuance - The funds raised will be used for projects that enhance the company's core competitiveness and sustainable development, specifically in precision braking and transmission components, and precision industrial bearing production lines [8]. - The company has a well-established team with extensive experience in the precision machinery sector, ensuring the successful implementation of the fundraising projects [9]. Measures to Mitigate Dilution of Immediate Returns - The company plans to enhance production and sales of existing products to improve profitability [10]. - Governance structures will be improved to ensure shareholder rights are protected and to facilitate effective decision-making [10]. - The company will accelerate the investment project timelines and utilize self-raised funds prior to the issuance to ensure project continuity [11]. - A robust management system for the raised funds will be established to ensure compliance and effective use [11]. - The profit distribution system will be refined to strengthen investor return mechanisms, ensuring adherence to cash dividend policies [12]. Commitments from Key Stakeholders - The controlling shareholders and management have committed to ensuring the effectiveness of the measures to mitigate the dilution of immediate returns and to comply with regulatory requirements [12][13].