Core Viewpoint - Chuncheng Power (603129.SH) received an inquiry from the Shanghai Stock Exchange regarding the necessity of its 2.5 billion yuan convertible bond fundraising project for capacity expansion, focusing on the details of its production plans and market strategy [1] Group 1: Regulatory Inquiry - The regulatory body requires the company to disclose the land use plan and approval progress for the annual production capacity of 3 million sets, as well as the technical differences between the new products and existing ones to justify the focus on its main business [1] - The inquiry also asks the company to explain the reasons for capacity fluctuations, the rationale for new capacity, and the risks of overcapacity, considering data on capacity utilization, sales rates, and market space [1] Group 2: Company Response - Chuncheng Power plans to add production capacity for 200,000 fuel motorcycles, 1.7 million electric bicycles, and 1.1 million electric motorcycles, which will share core technology with existing products but adapt to electric processes, representing an extension of its main business [1] - The company stated that its current capacity is nearing saturation, and the demand for electric two-wheelers remains high due to policy incentives, with further penetration opportunities in overseas markets, making the expansion aligned with its globalization strategy [1]