Core Viewpoint - Sichuan Youji Industrial Co., Ltd. successfully completed its first targeted convertible bond issuance under the new registration system of the Beijing Stock Exchange, raising approximately 1.15 billion yuan after expenses [1][2]. Group 1: Convertible Bond Details - The convertible bonds have a face value of 100 yuan each, with a maximum issuance of 1.2 million bonds and a term of six years [1]. - The coupon rates are set at 0.20% for the first year, increasing to 1.70% by the sixth year, indicating a low-cost financing advantage [1]. - The initial conversion premium is set at 120%, and the conditional redemption ratio is 140%, which raises the conversion threshold for investors [1][2]. Group 2: Investor Participation - The bond issuance attracted 24 quality investors, including Nord Fund Management Co., Ltd. and Huaxin International Trust Co., Ltd., successfully meeting the financing needs [2]. - The total amount raised is 1.2 billion yuan, with a net amount of approximately 1.15 billion yuan after deducting related issuance costs [2]. Group 3: Use of Proceeds - The funds will be used for the intelligent flexible production line for valves and supporting facilities, as well as for high-end casting and processing projects [3]. - The projects are expected to achieve an annual production capacity of 25,000 oil and gas valves and 3,558 tons of castings [3]. - The implementation of these projects will enhance the company's production capacity for mid-to-high-end valves and castings, meeting the growing demand in downstream markets [3].

Core Viewpoint - Sichuan Youji Industrial Co., Ltd. reported significant growth in its operating performance for the first half of 2025, driven by a strategy of simultaneous development in international and domestic markets, focusing on technological innovation and quality control [1][2]. Financial Performance - The company achieved operating revenue of 443 million yuan, a year-on-year increase of 18.66% - Net profit attributable to shareholders reached 34.3 million yuan, up 36.52% - Net profit after deducting non-recurring gains and losses was 32.97 million yuan, reflecting a growth of 50.21% - As of June 30, 2025, the net assets attributable to shareholders were approximately 621 million yuan, an increase of 1.87% compared to the end of 2024 [1]. Research and Development - R&D investment amounted to 20.43 million yuan, representing a year-on-year increase of 26.25% - The company and its subsidiaries obtained 1 invention patent, 11 utility model patents, and 2 design patents during the reporting period - Total patents held by the company and its subsidiaries reached 175, including 20 invention patents as of June 30, 2025 [2]. Future Plans - The company plans to raise up to 120 million yuan through a convertible bond issuance to fund the implementation of an intelligent flexible production line for valves and related technical renovation projects - The expected production capacity post-project completion includes 25,000 oil and gas valves and 3,558 tons of castings annually to meet market demand for customized equipment and components [2]. Industry Outlook - The customized machinery industry in China benefits from a complete industrial chain and cost advantages, suggesting a promising future for companies like Sichuan Youji in the non-standard or customized machinery equipment sector as global division of labor continues to evolve [3].