Core Viewpoint - Wanxiang Technology has announced the termination of its convertible bond issuance and the lithium battery project, which was initially a key part of its transformation strategy. The project faced multiple delays and funding cuts before its final cancellation, with remaining funds of 26.8 million yuan being allocated to supplement working capital [1][6]. Project Investment Progress - As of September 20, 2025, the investment progress for the lithium battery project reached 81.08%, and the construction was nearly complete. The production equipment has been put into operation, and mass production and delivery have commenced, meeting customer needs for a certain period [2]. Project History - The project was initially planned with a budget of 217.4 million yuan to produce 39 million micro lithium-ion batteries annually, with a construction period of 1.75 years. However, in August 2023, the project was delayed until December 31, 2024, and the budget was reduced to 117.4 million yuan, reallocating 100 million yuan for other projects [3][4]. Financial Performance - In the first half of 2025, the company reported a revenue of 634 million yuan, a year-on-year increase of 31.94%, but the net profit attributable to shareholders was only 2.01 million yuan, a significant decline of 85.71%. The non-recurring net profit was -981,400 yuan, a drop of 685.31% [6]. Business Segment Analysis - The revenue from the new energy power/storage business reached 167 million yuan, a substantial increase of 91.67%, but the gross margin for this segment was only 0.99%, down 6.35 percentage points year-on-year. The operating cash flow was negative at -32.24 million yuan [6]. Strategic Concerns - The frequent changes in investment plans suggest a potential lack of market insight from the management. The decision to terminate the project was influenced by external economic conditions and customer demand, raising questions about the initial market assessment and strategic planning [7][8]. Investor Confidence - The repeated delays and changes in the investment projects have raised concerns about the company's strategic planning and market judgment, potentially undermining investor confidence [8].

Core Viewpoint - Wanjing Technology has decided to terminate its "Battery Project" and permanently allocate the remaining raised funds to working capital, reflecting ongoing challenges in project execution and market conditions [2][4][6]. Group 1: Project Overview - The "Battery Project" was initially planned with a total investment of 1 billion RMB, with 217 million RMB from raised funds allocated for equipment and software, aiming to produce 39 million micro lithium-ion batteries annually [3]. - The project faced multiple delays, with the completion date pushed from August 2023 to December 2024, and then further to June 2026, while the allocated funds were reduced to approximately 117 million RMB [3][6]. - As of September 20, 2023, the cumulative investment in the "Battery Project" reached 95.19 million RMB, achieving an investment progress of 81.08% based on the adjusted total investment [5]. Group 2: Financial Implications - The company plans to use the remaining 26.79 million RMB of raised funds to enhance liquidity and support its main business operations, indicating a shift in focus towards optimizing asset structure and resource allocation [4][6]. - In the first half of 2025, Wanjing Technology reported revenues of approximately 167 million RMB from its power/storage business, a 91.67% increase year-on-year, and 420 million RMB from consumer electronics, a 16.55% increase year-on-year [6]. Group 3: Market Context - The micro lithium-ion batteries produced by the "Battery Project" are intended for various applications, including smart wearables, medical devices, and consumer electronics, which are in growing market segments [7]. - Industry experts suggest that the repeated delays and funding reallocations may indicate underlying issues in market expansion and management's ability to navigate market conditions, potentially impacting the company's long-term stability [8].

Core Viewpoint - Suzhou Wanxiang Technology Co., Ltd. plans to terminate the "New Micro Lithium-ion Battery and Precision Component Production Project" and permanently supplement remaining raised funds of 26.7994 million yuan into working capital, pending shareholder approval [1]. Group 1: Project Termination - The total investment for the terminated project was 1 billion yuan, with an original plan to use 217.3994 million yuan of raised funds [5]. - The project was expected to add an annual production capacity of 39 million micro needle-type and buckle-type lithium-ion batteries upon completion [5]. Group 2: Financial Performance - For the first half of 2025, the company's operating revenue was 634 million yuan, representing a year-on-year increase of 31.94% [5]. - The net profit attributable to shareholders was 2.0055 million yuan, a year-on-year decrease of 85.71% [5]. - The net profit excluding non-recurring gains and losses was -981,400 yuan, a year-on-year decrease of 685.31% [5]. - Basic earnings per share were 0.01 yuan [5].