Core Viewpoint - Jiangsu Nanfang Precision Co., Ltd. plans to issue shares to specific investors to raise funds for expanding its production capacity in the precision bearing and automotive component sectors, aligning with national policies supporting the automotive and bearing industries [9][12][24]. Group 1: Company Overview - Jiangsu Nanfang Precision Co., Ltd. was established on May 8, 1998, with a registered capital of 348 million yuan, focusing on manufacturing bearings and automotive components [8]. - The company aims to enhance its market competitiveness and profitability through the proposed fundraising and investment projects [12][24]. Group 2: Industry Background - The bearing industry is a strategic sector in China, with significant government support and policies promoting its development, particularly in the context of the automotive industry [9][12]. - The global bearing market reached approximately $120.98 billion in 2023, with a projected compound annual growth rate (CAGR) of 9.5% from 2023 to 2030 [9][11]. Group 3: Fundraising Purpose and Use - The total amount to be raised is capped at 187.53 million yuan, with funds allocated to projects including the construction of precision industrial bearing production lines and precision brake and transmission component production lines [15][20]. - The projects aim to expand production capacity and optimize product structure, thereby enhancing the company's ability to meet market demands and improve profitability [21][24]. Group 4: Market Trends and Opportunities - The automotive industry in China is experiencing rapid growth, with production and sales expected to reach 31.28 million and 31.44 million vehicles in 2024, respectively, marking a year-on-year increase of 3.7% and 4.5% [11][21]. - The demand for precision bearings, particularly in the automotive sector, is expected to rise significantly due to the increasing production of electric vehicles and the shift towards intelligent automotive systems [12][22]. Group 5: Project Implementation and Feasibility - The company has established a strong foundation in precision machinery and has accumulated extensive experience in production management and quality control, which supports the successful implementation of the proposed projects [26][30]. - The projects align with national policies aimed at enhancing the competitiveness of the domestic bearing industry and are expected to contribute to the company's sustainable development [24][32].

Group 1 - The background of the issuance highlights the importance of the bearing industry as a strategic sector supported by national policies, particularly in the context of the automotive industry, which is a key pillar of the national economy [2][4] - The global bearing market reached a size of $120.98 billion in 2023, with an expected growth to $226.6 billion by 2030, reflecting a compound annual growth rate (CAGR) of 9.5% from 2023 to 2030 [2] - The demand for roller bearings is robust, with the global market size for roller bearings estimated at $67.81 billion in 2023, accounting for 56.05% of the total bearing market [4] Group 2 - The company aims to enhance its product layout in the automotive parts and industrial bearing sectors through the issuance, focusing on import substitution and localization [5] - The issuance is expected to increase the company's total assets and net assets, while optimizing its capital structure and reducing the debt-to-asset ratio [5] - The issuance will not lead to a significant increase in liabilities, thereby enhancing the company's risk resistance capabilities [5] Group 3 - The issuance will involve the issuance of domestic A-shares, with a face value of RMB 1 per share [6] - The selection of issuance objects includes qualified institutional investors and will not exceed 35 entities, ensuring compliance with regulatory requirements [6][11] - The pricing of the shares will be based on the average trading price over the 20 trading days prior to the pricing date, ensuring it is not lower than 80% of that average [7][11] Group 4 - The issuance method is compliant with legal regulations, allowing for a targeted issuance to specific investors without public solicitation [8][9] - The company has confirmed that it does not fall under any prohibitive conditions for issuing shares to specific investors as outlined in the regulatory framework [9][13] - The issuance process has been approved by the board and shareholders, ensuring transparency and adherence to necessary procedures [14][15] Group 5 - The company has developed measures to mitigate the impact of share dilution on immediate returns, ensuring that commitments to shareholders are upheld [15] - The overall issuance plan is deemed fair and reasonable, aligning with the company's strategic development goals and benefiting all shareholders [15][16]

Core Viewpoint - Jiangsu Southern Precision Engineering Co., Ltd. is planning to issue A-shares to specific investors, which may dilute immediate returns, and the company has outlined measures to mitigate this impact [2][3][4]. Financial Impact Analysis - The company estimates that the total amount raised from the issuance will be approximately 187.53 million yuan, with an assumed issuance price of 17.51 yuan per share, leading to an estimated issuance of about 10.71 million shares [4][5]. - The projected net profit attributable to shareholders for 2025 is expected to grow by 10% compared to 2024, resulting in a basic earnings per share (EPS) of 0.34 yuan post-issuance [5][6]. - If the net profit remains flat compared to 2024, the basic EPS would remain at 0.31 yuan post-issuance [6]. Necessity and Feasibility of the Issuance - The funds raised will be used for projects that enhance the company's core competitiveness and sustainable development, specifically in precision braking and transmission components, and precision industrial bearing production lines [8]. - The company has a well-established team with extensive experience in the precision machinery sector, ensuring the successful implementation of the fundraising projects [9]. Measures to Mitigate Dilution of Immediate Returns - The company plans to enhance production and sales of existing products to improve profitability [10]. - Governance structures will be improved to ensure shareholder rights are protected and to facilitate effective decision-making [10]. - The company will accelerate the investment project timelines and utilize self-raised funds prior to the issuance to ensure project continuity [11]. - A robust management system for the raised funds will be established to ensure compliance and effective use [11]. - The profit distribution system will be refined to strengthen investor return mechanisms, ensuring adherence to cash dividend policies [12]. Commitments from Key Stakeholders - The controlling shareholders and management have committed to ensuring the effectiveness of the measures to mitigate the dilution of immediate returns and to comply with regulatory requirements [12][13].

Core Viewpoint - Jiangsu Nanfang Precision Co., Ltd. reported significant growth in revenue and net profit for the first half of 2025, indicating strong operational performance and market demand in the precision machinery manufacturing sector [2][3]. Company Overview and Financial Indicators - Jiangsu Nanfang Precision Co., Ltd. is a prominent player in the precision machinery manufacturing industry, focusing on the research, development, manufacturing, and sales of precision components such as needle bearings and one-way clutches [3][6]. - The company’s revenue for the first half of 2025 reached approximately 414.14 million yuan, a 13.92% increase compared to the same period in 2024 [2]. - The net profit attributable to shareholders was approximately 229.47 million yuan, a substantial increase of 32,852.69% compared to a loss in the previous year [2]. - The company plans not to distribute cash dividends or issue bonus shares for this period [1]. Business Operations - The company has expanded its product applications from traditional vehicles to include new energy vehicles, commercial vehicles, and industrial robots, reflecting a strategic shift towards high-growth sectors [3][4]. - The establishment of a new energy vehicle parts division has allowed the company to enhance its product offerings and market presence in the rapidly growing new energy sector [3][6]. - The company has also ventured into the integrated circuit industry through a controlling stake in Shanghai Zhencheng, diversifying its business operations [3][6]. Industry Performance - The automotive bearing market is closely tied to the production and sales of vehicles, with a notable increase in demand driven by the growth of electric vehicles and the overall automotive market [4][5]. - In the first half of 2025, the automotive industry in China saw a production and sales volume of 9.27 million passenger vehicles, a year-on-year increase of 25% [4]. - The new energy vehicle segment experienced significant growth, with production and sales reaching approximately 696.8 thousand units, marking a year-on-year increase of 41.4% [4][5]. Competitive Advantages - The company maintains a strong competitive edge through advanced manufacturing processes, a robust research and development capability, and established relationships with major international automotive parts suppliers [6][7]. - The company has a well-structured talent development system, focusing on both internal training and external recruitment to build a skilled workforce [9]. - The company has been recognized for its quality and service, receiving multiple awards from prominent automotive manufacturers [9]. Financial Performance Analysis - The company’s gross profit margin for the precision bearing segment was approximately 34.59%, reflecting effective cost management despite rising operational costs [11]. - The company’s total assets increased by 17.28% to approximately 1.68 billion yuan compared to the end of the previous year [2]. - The company’s cash flow from operating activities was approximately 34.10 million yuan, indicating stable cash generation capabilities [2]. Future Outlook - The company anticipates continued growth in the new energy vehicle market, supported by favorable government policies and increasing consumer demand [5]. - However, the company also faces challenges from external economic uncertainties and competitive pressures within the automotive supply chain [5][10].

Core Viewpoint - The stock of Jiangsu Southern Precision Engineering Co., Ltd. experienced a 5.05% increase, reaching 34.92 CNY per share, with a total market capitalization of 12.152 billion CNY as of August 27 [1] Company Overview - Jiangsu Southern Precision Engineering Co., Ltd. is located in the Wujin High-tech Industrial Development Zone, Changzhou, Jiangsu Province, and specializes in the manufacturing and R&D of bearings and related components in the transmission field [1] - The company's product offerings include needle bearings, one-way clutches, one-way pulley assemblies, and precision machined parts, serving numerous Fortune 500 companies and other renowned global firms [1] - The company has obtained certifications for IATF16949 quality management system, ISO14001 environmental management system, and ISO45001 occupational health and safety management system [1] - Southern Precision has a global presence, with a subsidiary in Germany and an office in India [1] Financial Performance - For the period from January to March 2025, the company reported an operating income of 179 million CNY, reflecting a year-on-year growth of 9.18% [1] - The net profit attributable to shareholders for the same period was 91.5076 million CNY, showing a significant year-on-year increase of 727.82% [1] - As of March 31, the company had 119,100 shareholders, with an average of 2,105 circulating shares per shareholder [1]

Company Overview - Jiangsu Nanfang Precision Co., Ltd. is primarily engaged in the manufacturing and sales of precision bearings, one-way clutches, one-way pulley assemblies, and other precision components, with precision bearings accounting for over 50% of its revenue [12][17]. - The company was established on May 8, 1998, and was listed on the Shenzhen Stock Exchange on February 25, 2011 [12]. Financial Information - As of the reporting period, the total share capital of the company is 348 million shares, with a structure comprising 27.93% restricted circulation shares and 72.07% unrestricted circulation shares [10][11]. - The company reported a significant investment of 101.19 million yuan (approximately 15.5 million USD) in the new production capacity for ball screw assemblies, which is expected to increase production capacity by 3 million sets, representing a 4518.07% expansion [2]. Investment Risks - There are risks associated with the new production capacity for ball screw assemblies, including potential market growth not meeting expectations and increased competition [2]. - The company has recognized a potential impairment of 70.34 million yuan (approximately 10.5 million USD) related to its investment in Huzhou Hongtian, which may further impact its financial performance if the operational situation of the invested company deteriorates [2][3]. Industry Overview - The global bearing market is projected to grow from 120.98 billion USD in 2023 to 226.60 billion USD by 2030, with a compound annual growth rate (CAGR) of 9.4% [22]. - China's bearing industry achieved a revenue of 218 billion yuan (approximately 32.5 billion USD) in 2023, with a production volume exceeding 20.2 billion sets, ranking third globally in terms of sales and production [24]. Regulatory Environment - The industry is regulated by the National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT), which oversee industry development planning and policy implementation [17][18]. - The China Bearing Industry Association plays a significant role in industry self-regulation, providing statistical data and analysis to support government policy-making [18]. Market Characteristics - The bearing industry is characterized by its cyclical nature, closely tied to macroeconomic conditions, and regional concentration, with several industrial clusters across China [24][21]. - The industry has evolved through various stages, from initial market formation to rapid development and technological upgrades, leading to increased competition and innovation [22][21].

Company Overview - Jiangsu Nanfang Precision Co., Ltd. was established on May 8, 1998, with a registered capital of 348 million yuan and is listed on the Shenzhen Stock Exchange under the stock code 002553 [9][10]. - The company primarily engages in the manufacturing and sales of precision bearings, automotive components, and industrial robots, with precision bearings accounting for over 50% of its revenue [14][20]. Fundraising and Investment Plans - The company plans to raise funds through a private placement of A-shares, with 50.15% of the raised capital (approximately 101.19 million yuan) allocated to the production of ball screw assemblies, which will increase annual production capacity by 3 million sets, representing a 4518.07% expansion [2][3]. - The expected average gross profit margin for the new investment project is 28.46%, with projected annual sales revenue of approximately 225.48 million yuan upon reaching full production [5]. Risks Associated with Business Operations - There are significant risks related to the absorption of new production capacity for ball screw assemblies, particularly if market growth does not meet expectations or competition intensifies [2][3]. - The company has recognized a potential impairment loss of 70.34 million yuan on its investment in Huzhou Hongtian, which indirectly holds shares in Hezhong New Energy, due to reported operational difficulties [2][3]. - The company faces risks in expanding its electric scroll compressor business, especially if its main customer, Hezhong New Energy, continues to experience operational challenges [3][4]. Industry Context - The global bearing market is projected to grow from 120.98 billion USD in 2023 to 226.60 billion USD by 2030, with a compound annual growth rate (CAGR) of 9.4% [19]. - China's bearing industry achieved a revenue of 218 billion yuan in 2023, with a production volume exceeding 20.2 billion sets, positioning it as the third-largest in the world [20]. - The industry is characterized by cyclical trends, closely tied to macroeconomic conditions, and is organized into several regional clusters, each specializing in different types of bearings [20].

Group 1 - The company held its 20th meeting of the 6th Board of Directors on May 16, 2025, where it unanimously agreed to waive the advance notice requirement for the meeting [2][3] - All 9 directors attended the meeting, which was presided over by Chairman Shi Jianwei, and the procedures complied with relevant laws and regulations [4][5] - The Board approved the adjustment of the plan for issuing A-shares to specific targets, with a total fundraising amount not exceeding 201.76 million yuan [6][9] Group 2 - The adjusted fundraising amount is a reduction from the previous cap of 366.09 million yuan, due to the company's financial investments exceeding 10% of its net assets [9][54] - The company plans to use the raised funds for projects related to precision braking and transmission components, as well as precision industrial bearing production lines, which align with its core business [38] - The company has a well-established talent team and technical capabilities to support the implementation of the fundraising projects [39][40] Group 3 - The company will take measures to mitigate the dilution of immediate returns resulting from the issuance, including enhancing production and sales of existing products [41][42] - The company has committed to improving its governance structure to ensure shareholder rights are protected and to maintain effective oversight [43] - The company will accelerate the investment project timelines to enhance its production capacity and market competitiveness [44]

Core Viewpoint - Jiangsu Southern Precision Engineering Co., Ltd. is issuing A-shares to specific investors, which may dilute immediate returns, and the company has outlined measures to mitigate this impact [1][2][6]. Financial Impact Analysis - The total amount of funds raised from this issuance is estimated to be 201.76 million yuan, with an assumed issuance price leading to approximately 12.04 million shares being issued [2][3]. - The company anticipates a 10% increase in net profit attributable to shareholders in 2025 compared to 2024, with pre-dilution earnings per share (EPS) estimated at 0.07 yuan and post-dilution EPS at 0.31 yuan [3][5]. - If net profit remains flat compared to 2024, the EPS figures would remain unchanged at 0.07 yuan pre-dilution and 0.31 yuan post-dilution [5]. Necessity and Feasibility of the Issuance - The funds raised will be used for projects that enhance the company's core competitiveness and sustainable development capabilities [6][8]. - The company operates in precision components, serving various sectors including automotive and industrial machinery, which supports the rationale for the issuance [6][8]. Project Relationship with Existing Business - The funds will be allocated to projects related to the company's existing operations, specifically in precision braking and transmission components, which aligns with its strategic goals [7][8]. Human Resources, Technology, and Market Readiness - The company has a well-established team with extensive experience in precision machinery, ensuring effective project implementation [9]. - It has a strong technical foundation with over 170 R&D personnel and more than 150 patents, supporting innovation and product development [9]. - The company has built a solid market presence and customer relationships, which will facilitate the successful execution of the fundraising projects [9]. Measures to Mitigate Dilution of Immediate Returns - The company plans to enhance production and sales of existing products to improve profitability [10]. - Governance structures will be strengthened to ensure shareholder rights and effective decision-making [10]. - The company will expedite project investment and ensure efficient use of raised funds [11]. - A profit distribution system will be established to reinforce investor return mechanisms [12]. Commitments from Key Stakeholders - The controlling shareholders and management have made commitments to ensure the execution of measures to mitigate the dilution of immediate returns [12].

Group 1 - The company, Jiangsu Nanfang Precision Co., Ltd., plans to issue A-shares to specific investors to raise funds for expanding its production capacity in precision components, particularly in the automotive and industrial sectors [11][12][14] - The total amount to be raised is not exceeding 201.76 million RMB, with the funds allocated to projects including the construction of precision braking and transmission component production lines and precision industrial bearing production lines [19][23] - The global bearing market is projected to grow from 120.98 billion USD in 2023 to 226.6 billion USD by 2030, with a compound annual growth rate (CAGR) of 9.5% [12][36] Group 2 - The automotive industry is a significant downstream market for the bearing industry, with China's automotive production and sales expected to reach 31.28 million and 31.44 million units respectively in 2024, marking a year-on-year growth of 3.7% and 4.5% [12][25] - The company aims to enhance its market competitiveness and profitability by focusing on domestic substitution and expanding its product layout in the automotive parts and industrial bearing sectors [13][25] - The company has established a solid foundation in the automotive parts sector, with a focus on precision components for braking and transmission systems, leveraging its technical expertise and production capabilities [27][30] Group 3 - The issuance will not change the control of the company, as the major shareholder, Shi Jianwei, will maintain his controlling stake post-issuance [22][14] - The company has received necessary approvals for the issuance and is awaiting further regulatory approvals from the Shenzhen Stock Exchange and the China Securities Regulatory Commission [11][22] - The projects funded by the issuance are aligned with national policies supporting the development of key automotive components and the overall growth of the automotive industry in China [35][36]