Core Viewpoint - Jiangxi Naipu Mining Machinery Co., Ltd. is applying to issue convertible bonds to raise up to 450 million yuan for a new materials mining wear parts manufacturing project in Peru and to supplement working capital [2][8]. Financial Matters - The total amount to be raised from the issuance of convertible bonds is capped at 450 million yuan, which will be used for a project in Peru with an annual production capacity of 12,000 tons of new materials mining wear parts and to supplement working capital [2][3]. - The project will leverage Peru's geographical advantages to serve markets in Chile, Mexico, Colombia, and Ecuador, where there is a strong demand for mining wear parts [2][3]. - The expected sales revenue for the Peru subsidiary in 2024 is projected to be 505.55 million yuan, with an estimated gross margin of 40.67% [2][3]. - The average gross margin for overseas mining rubber wear parts during the reporting period was 47.49% [2][3]. Project Delays and Financial Status - The previous fundraising for the Chile marketing service center project has reached 100.02% usage, but the project completion date has been extended from February 2022 to February 2027 due to lengthy approval processes [2][3]. - The Chile project has also been delayed from June 2024 to December 2025 due to complex local government approvals [2][3]. - As of the end of the reporting period, the company's cash balance was 532.55 million yuan [2][3]. Financing Necessity - The company has calculated a funding gap of 767.41 million yuan over the next three years, necessitating the issuance of convertible bonds to alleviate financial pressure and support project development [8][9]. - The financing will help maintain a healthy debt structure, as the company's debt-to-asset ratio was 36.07% at the end of the reporting period, and the issuance of convertible bonds is expected to keep this ratio stable [8][9]. Sales Performance in Latin America - The company has seen significant growth in sales in Latin America, with revenues increasing from 7.59 million yuan in 2022 to 17.73 million yuan in 2024, reflecting a compound annual growth rate of 52.89% [10][11]. - The share of Latin American sales in total revenue rose from 10.14% to 19.70% during the reporting period, indicating the region's growing importance to the company's overall business [10][11]. - The main products sold in Latin America are mining wear parts, with sales revenue for these products increasing significantly during the reporting period [11][12]. Customer Development - The company has successfully expanded its customer base in Latin America, increasing the number of customers from 23 at the beginning of 2022 to 51 by March 2025, a growth of 121.74% [12][13]. - The revenue contribution from new customers has also increased, demonstrating effective customer acquisition strategies [12][13].

Core Viewpoint - Jiangxi Naipu Mining Machinery Co., Ltd. plans to issue convertible bonds to raise up to 450 million yuan for a new materials mining wear parts manufacturing project in Peru and to supplement working capital [2][9]. Group 1: Financing Necessity - The company has a projected funding gap of 767.41 million yuan over the next three years, making the issuance of 450 million yuan in convertible bonds necessary to alleviate financial pressure and support project development [9][10]. - The financing will help the company maintain a reasonable debt level and reduce operational and financial risks, as the debt ratio is expected to rise significantly if the funding gap is covered solely through bank loans [9][10]. Group 2: Project Details - The new manufacturing project in Peru aims to produce 12,000 tons of new materials mining wear parts annually, leveraging Peru's geographical advantages to serve markets in Chile, Mexico, Colombia, and Ecuador [2][12]. - The project will be executed by Naipu Peru Mining Machinery Co., Ltd., a wholly-owned subsidiary, and is expected to generate sales revenue of 505.55 million yuan in 2024 with a gross margin of 40.67% [2][12]. Group 3: Product and Market Analysis - The fundraising will not introduce new products but will expand the existing range of rubber wear parts for mining equipment, which includes components for various mining processes [11][13]. - The company has established a solid technical and personnel foundation to support the production of these products, ensuring the project's successful implementation [11][12]. Group 4: Regulatory and Approval Process - The company has completed the necessary land acquisition for the project, purchasing 72,301.30 square meters of land in Peru, with prior investments made before the board's approval of the bond issuance [13][14]. - The project is subject to various regulatory approvals, and the company is actively managing these processes to mitigate potential delays [12][14].

Core Viewpoint - Jiangxi Naipu Mining Machinery Co., Ltd. is applying to issue convertible bonds to raise up to 450 million yuan for a new materials mining wear parts manufacturing project in Peru and to supplement working capital [2][9][11]. Financial Matters - The total amount to be raised from the issuance of convertible bonds is capped at 450 million yuan, which will be used for a project in Peru with an annual production capacity of 12,000 tons of new materials mining wear parts and to supplement working capital [2][9]. - The project will leverage Peru's geographical advantages to serve markets in Chile, Mexico, Colombia, and Ecuador, which are rich in mineral resources [2][9]. - The expected sales revenue for the Peru subsidiary in 2024 is 505.55 million yuan, with an anticipated gross margin of 40.67% [2][9]. - The average gross margin for overseas mining rubber wear parts during the reporting period was 47.49% [2][9]. - As of the end of 2024, the company's cash balance was 532.55 million yuan [2][9]. Financing Necessity - The company has a projected funding gap of 767.41 million yuan over the next three years (2025-2027) [10][11]. - The issuance of convertible bonds is deemed necessary to effectively bridge this funding gap and provide financial support for the construction of the project and the company's steady development [9][10]. - The financing will help the company manage its debt levels and reduce operational and financial risks [9][10]. Sales Performance in Latin America - The company has seen significant growth in sales in Latin America, with revenues increasing from 75.86 million yuan in 2022 to 174.44 million yuan in 2024, reflecting a compound annual growth rate of 52.89% [11][12]. - The proportion of sales from Latin America increased from 10.14% to 19.70% during the reporting period, indicating the region's growing importance to the company's overall development [11][12]. - The company has successfully expanded its customer base in Latin America, increasing the number of customers from 23 to 51, a growth of 121.74% [13][14]. Market Expansion Strategy - The main objective of the fundraising project is to expand the market in Latin America, which is a key area for the company's global operations [14]. - The establishment of a production base in Peru will enhance the company's service capabilities and brand influence in the region, allowing it to better serve existing customers and attract new ones [14]. - The company aims to tap into the significant market potential in Latin America, where many large-scale mining operations are located, thus supporting the absorption of the new production capacity [14].