Core Viewpoint - The company Oriental Materials announced a cross-industry investment plan involving a total of 48 million yuan, which includes an investment of 18 million yuan in Suzhou First Element Nanotechnology Co., Ltd. and the establishment of a joint venture named Carbon Nest Technology (Tengzhou) Co., Ltd. [2] Investment Details - The investment consists of a convertible debt of 18 million yuan, which can be converted into equity under certain conditions, and a direct investment of 30 million yuan in the joint venture, giving Oriental Materials a 30% stake [2][5] - The joint venture has a registered capital of 100 million yuan, with First Element contributing 40% through intellectual property or cash [2] Financial Performance of First Element - First Element reported cumulative losses exceeding 5.4 million yuan from 2024 to the first half of 2025, with projected revenues of 10.5 million yuan and a net loss of 4.15 million yuan for 2024, and revenues of 4.73 million yuan with a net loss of 1.32 million yuan for the first half of 2025 [3] Business Rationale - The Shanghai Stock Exchange questioned the commercial rationale behind investing in a loss-making asset, highlighting the significant differences between the core businesses of Oriental Materials and First Element [3] - Oriental Materials defended the investment by emphasizing First Element's status as a national high-tech enterprise and its core product, high-purity carbon nanofibers, which have applications in various battery technologies [3][4] Production Capacity and Market Potential - First Element's subsidiary has a production capacity of 4.67 tons of carbon nanofiber powder and 65.5 tons of carbon nanofiber slurry for 2024 [3] - The joint venture aims to produce 1,000 tons of conductive slurry and 30 million square meters of CNTp-3D current collectors, which is expected to enhance the competitiveness of China's battery industry [7] Shareholder and Management Background - The joint venture includes a former executive of Oriental Materials, who has relevant experience and management capabilities, although the company clarified that there are no conflicts of interest [6] - The intellectual property contributed by First Element has not yet been evaluated for its value [6] Future Risks - The company acknowledged potential risks, including the possibility that First Element may face financing challenges, which could hinder the conversion of debt to equity [7]

Group 1 - Suzhou Huazhi Jie Telecommunications Co., Ltd. officially listed on the Shanghai Stock Exchange on June 20, marking the third company supported by Kunshan Chuangkong Fund Group to go public this year and the seventh new domestic and foreign listed company in Suzhou [1] - The company has developed a combination of 32 underlying technologies in the lithium battery power tools and consumer electronics sectors, projecting a revenue of 1.23 billion yuan and a net profit of 154 million yuan in 2024 [1] - The successful listing of Huazhi Jie exemplifies the capital empowerment of enterprises by Chuangkong Fund Group, which established a 1 billion yuan Yida Science and Technology Innovation Fund in August 2022, with Huazhi Jie being the first investment project [1] Group 2 - In March, Wengke Nano (Suzhou) Co., Ltd. also listed on the Sci-Tech Innovation Board, becoming the 700th domestic listed company in the province and the 113th on the Sci-Tech Innovation Board, with a compound annual growth rate of 58% in revenue over the past three years [2] - The investment logic of Chuangkong Group focuses on high-end equipment, new materials, biomedicine, and the Internet of Things, targeting "specialized, refined, distinctive, and innovative" enterprises with "gazelle potential" or "little giant" characteristics [2] - The fund group's operational model is continuously optimized, with the successful launch of the "Brand Co-construction + Platform Operation" 2.0 cooperation model in 2024, aiming to enhance investment efficiency and local service capabilities [2] Group 3 - The Kunshan Chuangkong Group has become a core engine driving regional industrial innovation, completing the establishment of five funds with a total scale exceeding 9.1 billion yuan from January to May [3] - The group has injected nearly 70 million yuan into three key projects, providing "capital lifeblood" to upstream and downstream enterprises in the industrial chain [3] - The total scale of the Chuangkong Fund Group has surpassed 70 billion yuan, supporting the growth of over 480 enterprises, demonstrating the effectiveness of local state-owned financial platforms in promoting high-quality regional development [3]