Core Viewpoint - Kangda New Materials has been engaging in frequent capital operations and acquisitions, but it has faced continuous losses in 2023 and 2024, raising concerns about its financial health and the effectiveness of its high-premium acquisitions [1][3][12] Group 1: Recent Acquisitions and Financing - On June 20, Kangda New Materials announced the acquisition of a 51% stake in Zhongke Huami, continuing its recent trend of capital operations [1] - The company plans to raise no more than 585 million yuan through a private placement to fund project construction and supplement working capital [1][11] - Kangda has made several high-value acquisitions, including a total expenditure of 457.4 million yuan for a 100% stake in Biko Technology, which it recently sold 51% of for 188.48 million yuan, resulting in a significant loss [2][17] Group 2: Financial Performance and Challenges - Kangda New Materials reported revenues of 2.793 billion yuan in 2023 and 3.101 billion yuan in 2024, with net profits of 30 million yuan and a loss of 246 million yuan respectively [12] - The company has faced continuous losses due to factors such as significant goodwill impairment, reduced revenue from electronic information materials, and increased depreciation and financing costs [12] - The goodwill impairment losses for Biko Technology were 19 million yuan in 2023 and 118 million yuan in 2024, indicating ongoing financial strain [4][12] Group 3: Asset Sales to Controlling Shareholders - Kangda has sold key assets at a loss to its controlling shareholder, Tangshan Gongkong, including the sale of a 66.9996% stake in Caijing Optoelectronics for 405.88 million yuan, despite having acquired it for 409.7 million yuan [1][13] - The sale of Biko Technology's 51% stake was also at a loss, raising questions about the fairness of these transactions [2][18] - The company claims these transactions are part of a strategy to optimize resource allocation and improve operational efficiency [18]

Core Viewpoint - Kangda New Materials plans to raise up to 585 million yuan through a private placement to enhance its competitiveness, supported by state-owned assets from Tangshan [1][2][3] Group 1: Fundraising Details - The company intends to issue no more than 91.02 million shares to up to 35 specific investors, including its controlling shareholder, Tangshan Gongkong [3] - The raised funds will be allocated to an 80,000 tons/year electronic-grade epoxy resin expansion project, the Kangda Northern R&D Center, and to supplement working capital [3][8] - Following the issuance, Tangshan Gongkong's indirect stake in Kangda New Materials will decrease to 23.84%, while other investors will hold a combined 18.71% [3] Group 2: Historical Context - Since Tangshan Gongkong took control in 2019, it has consistently increased its stake through both secondary market purchases and private placements, spending approximately 104 million yuan in the past year and a half [1][4][6] - The company previously completed a private placement in August 2022, raising around 700 million yuan, with Tangshan Gongkong being the largest subscriber [4] Group 3: Financial Performance - Kangda New Materials has faced significant financial challenges, reporting a cumulative loss of approximately 458 million yuan over the past two years, with net profits of 30.31 million yuan in 2023 and a loss of 246 million yuan in 2024 [7][8] - The decline in performance is attributed to reduced market demand, asset impairment provisions, and increased expenses [7] Group 4: Strategic Adjustments - The company has divested two assets in the past six months to optimize resource allocation, selling a 66.9996% stake in Cai Jing Optoelectronics for 496 million yuan and a 61% stake in Biko Technology for 188 million yuan [8] - The fundraising aims to implement a "new materials + electronic technology" dual-drive strategy, focusing on high polymer new materials and enhancing the electronic technology segment [2][8]