JCT(SH:603657) Sou Hu Cai Jing·2025-09-05 04:34Core Viewpoint - The company, Jinhua Chunguang Rubber and Plastic Technology Co., Ltd., has signed an investment supervision agreement for a new project with a total investment of approximately RMB 1 billion, aimed at enhancing its production capabilities and reducing rental costs [5][8]. Group 1: Investment Overview - The company's wholly-owned subsidiary, Suzhou Shangteng Technology Manufacturing Co., Ltd., has acquired land use rights in Suzhou to build a new facility due to the limitations of its current rented space [5][6]. - The first phase of the investment is expected to be around RMB 289 million, with further investments to be determined based on operational and market conditions [5][15]. - The project aims to produce 8 million clean electrical products annually, with a land area of 21,800.1 square meters and a land use period of 30 years [8]. Group 2: Agreement Details - The agreement involves the Jiangsu Province Wuzhong High-tech Industrial Development Zone Management Committee and the Xukou Town People's Government, indicating a non-related party transaction [6][7]. - The agreement stipulates that the company must meet specific investment intensity and tax revenue requirements, including an average investment intensity of no less than RMB 25.49 million per mu and an average tax revenue of no less than RMB 1 million per mu after production [10][11]. Group 3: Implementation and Risks - The project requires various governmental approvals, including environmental assessments and construction permits, which may pose risks if there are changes in policies or delays in obtaining these approvals [2][17]. - The company plans to manage funding through its own resources, bank loans, or other financing methods, emphasizing the importance of timely capital allocation to avoid project delays [3][17]. - The company anticipates that the investment will not significantly impact its 2025 financial performance, aligning with its long-term strategic goals [15].