JXAC(SH:600495) Shang Hai Zheng Quan Bao·2025-09-29 21:16Summary of Key Points Core Viewpoint The company, Jinxi Axle Co., Ltd., is announcing a change in the allocation of part of its raised funds from a previous stock issuance, redirecting surplus funds from a completed project to a new project aimed at enhancing production capabilities. Group 1: Fundraising Overview - The company raised a total of RMB 129,000.00 million through a non-public stock issuance in August 2013, with a net amount of RMB 126,113.70 million after deducting fees [2][3]. - The funds were initially allocated to the "Rail Transit and High-end Equipment Manufacturing Base Construction Project (Phase I)" [3][6]. Group 2: Change in Fund Allocation - The company plans to reallocate RMB 2,895.00 million from the surplus of the completed project to the "Key Structural Components Processing Capacity Construction Project" [3][4]. - This reallocation represents 2.30% of the net amount raised from the stock issuance [3]. Group 3: Project Details - The new project will involve the construction of production lines for key structural components, including the addition or modification of 15 sets of equipment and an area of 1,935.20 square meters [9][10]. - The total investment for the new project is RMB 2,895.00 million, with specific allocations for construction, equipment purchase, installation, and other expenses [10]. Group 4: Feasibility and Necessity - The project aligns with the company's strategic goal of optimizing product structure and expanding into defense equipment, thus enhancing production capacity [11][12]. - The company has secured orders for the new product line, necessitating the project to ensure stable quality and timely delivery [12]. Group 5: Economic Benefits - Upon completion, the project is expected to improve precision machining capabilities, with a projected post-tax internal rate of return of 5.38% and a payback period of approximately 9.88 years [13]. Group 6: Approval Process - The board of directors approved the change in fund allocation on September 29, 2025, and the matter will be submitted for shareholder approval [5][6]. - Independent directors and the sponsoring institution have expressed their agreement with the proposed changes [15][16].