Core Viewpoint - The company, Siquan New Materials (301489.SZ), is accelerating its investment and expansion efforts driven by the digital economy, with a focus on overseas capacity layout and enhancing production and service capabilities to seize opportunities arising from rapid digital economic growth [1][2]. Fundraising and Project Allocation - Siquan New Materials plans to raise up to 466 million yuan through a private placement, with nearly 80% of the funds (approximately 369 million yuan) allocated to the Vietnam heat dissipation product project, which will enhance production capacity for graphite heat dissipation materials and thermal interface materials [2][3]. - The company will also invest in a liquid cooling research and development center in Dongguan, with an allocation of approximately 31.59 million yuan, focusing on liquid cooling technology for high-energy consumption scenarios [2][3]. - An additional 30.16 million yuan will be used for information system construction, aimed at creating a unified system management platform [3]. Market Growth and Strategic Positioning - The global cold plate liquid cooling market is projected to grow from 5.3 billion yuan in 2024 to 105.6 billion yuan by 2028, with a compound annual growth rate of 111%, positioning the company to enter the core supply chain of server manufacturers and large cloud service providers [3]. - The strategic investment in overseas capacity is expected to reduce logistics costs and improve response times to customer demands, integrating more deeply into the global supply chain of key clients [2][3]. Financial Performance and Growth - Siquan New Materials has shown a revenue increase from 423 million yuan in 2022 to 656 million yuan in 2024, with a compound annual growth rate of 24.5% [1][5]. - In Q1 2025, the company reported a revenue of 183 million yuan, a year-on-year increase of 93.59%, and a net profit of 17.72 million yuan, up 79.57% from the previous year [5]. - The total assets of the company grew from 410 million yuan in 2020 to 1.561 billion yuan in Q1 2025, marking a significant increase of 270.98% over the five years [6]. Research and Development Focus - Siquan New Materials has invested significantly in R&D, with expenditures totaling 126 million yuan over five years, representing about 5.5% of total revenue [6]. - The company has achieved notable advancements in thermal management materials, holding 118 patents, including 43 invention patents [6].

Core Viewpoint - Guangdong Suqun New Material Co., Ltd. plans to issue shares to specific investors to raise funds for expanding production capacity and enhancing competitiveness in the thermal management materials market, particularly in response to growing demand from the consumer electronics and new energy vehicle sectors [1][15][27]. Group 1: Issuance Plan Overview - The company intends to raise a total of 465.9139 million yuan through this issuance, which will be fully allocated to specific projects [4][26]. - The issuance will be conducted through a private placement to no more than 35 specific investors, including qualified institutional investors and individuals [19][20]. - The final issuance price will be determined based on the average trading price of the company's shares over the 20 trading days prior to the pricing date, with a minimum price set at 80% of this average [2][21]. Group 2: Market Demand and Growth - The demand for thermal management materials is increasing due to advancements in consumer electronics, driven by technologies such as 5G, AI, and IoT, which require improved performance and efficiency [9][10]. - The new energy vehicle market is also a significant driver, with global sales projected to reach 22.397 million units in 2025, representing a 24.4% year-on-year growth [10]. - The data center market is expanding rapidly, with the global cold plate liquid cooling market expected to grow from 5.3 billion yuan in 2024 to 105.6 billion yuan by 2028, indicating a compound annual growth rate of 111.27% [11]. Group 3: Strategic Objectives - The issuance aims to optimize production capacity and reduce risks by establishing a production line in Vietnam, which is becoming a key manufacturing hub for major consumer electronics brands [12][14]. - The company seeks to enhance its service capabilities and integrate more deeply into the global supply chain of core customers, thereby solidifying its competitive advantage in the thermal management materials sector [15][27]. - The investment in a liquid cooling research center is intended to improve R&D capabilities and respond quickly to the growing demand in high-performance computing and data center applications [33]. Group 4: Regulatory and Approval Process - The issuance plan has been approved by the company's board of directors but still requires approval from the shareholders' meeting and regulatory bodies such as the Shenzhen Stock Exchange and the China Securities Regulatory Commission [1][25]. - The company will adjust the issuance plan according to any new regulations or requirements from regulatory authorities [20][21]. Group 5: Financial and Operational Impact - The funds raised will be used to enhance production capabilities, particularly in graphite thermal materials, which are essential for various applications in consumer electronics and new energy vehicles [27][28]. - The company plans to utilize self-raised funds for initial project investments before the raised funds are available, ensuring project continuity [4][26]. - The issuance is expected to strengthen the company's financial position, allowing for better capital structure management and reduced operational risks [17][24].

Core Viewpoint - The company, Guangdong Siquan New Materials Co., Ltd., plans to issue A-shares to specific investors to enhance its capital strength and profitability, driven by the growing demand for thermal management materials in various sectors, including consumer electronics and new energy vehicles [1][7][19]. Group 1: Background and Purpose of the Issuance - The issuance is motivated by the increasing demand for thermal management materials due to advancements in consumer electronics, 5G, AI, and IoT technologies, which require improved performance and efficiency [1][6]. - The new energy vehicle market is a significant application area for thermal management materials, with global sales expected to reach 22.4 million units in 2025, up from 18.2 million in 2024, indicating a 24.4% growth [2]. - The data center market is also expanding rapidly, with the global cold plate liquid cooling market projected to grow from 5.3 billion yuan in 2024 to 105.6 billion yuan by 2028, reflecting a compound annual growth rate (CAGR) of 111.27% [3]. Group 2: Investment and Market Trends - The new materials industry, particularly thermal management materials, is crucial for national economic development, supported by government policies aimed at fostering innovation and quality in material production [6]. - The company aims to optimize its production capacity and reduce risks by establishing a manufacturing line in Vietnam, responding to increased investments from major consumer electronics brands [4][5][7]. - The digital economy's growth is driving demand for higher computational power, which in turn increases the need for efficient thermal management solutions in data centers and high-performance computing [7][8]. Group 3: Financial Aspects of the Issuance - The total funding requirement for the projects associated with this issuance is approximately 465.9 million yuan, which cannot be met by the company's own funds, necessitating external financing [9][10]. - The issuance will involve the sale of up to 24,226,160 shares, not exceeding 30% of the company's total share capital prior to the issuance [17]. - The funds raised will be allocated to projects including the Vietnam thermal management product project, a liquid cooling research center, and the enhancement of the company's information systems [15][19]. Group 4: Compliance and Fairness of the Issuance - The issuance process has been reviewed and approved by the company's board and will be presented to the shareholders for a fair vote, ensuring compliance with relevant regulations [20][21]. - The selection of specific investors for the issuance will adhere to regulatory requirements, with a maximum of 35 investors participating [11][16]. - The pricing of the shares will be based on the average trading price over the 20 trading days prior to the issuance date, ensuring fairness in the pricing mechanism [12][16].

Core Viewpoint - The company plans to raise a total of 465.91 million yuan through a private placement of A-shares, with the funds primarily allocated to projects related to its main business, including the establishment of a heat dissipation product project in Vietnam, a liquid cooling research center, and an information system upgrade [2][15]. Fund Utilization Plan - The total amount to be raised is 465.91 million yuan, which will be fully invested in the specified projects after deducting issuance costs [2]. - The company will initially use self-raised funds for the projects until the raised funds are available, and will adjust the investment amounts based on the actual net amount raised [2]. Feasibility Analysis of Fund Investment Projects Vietnam Heat Dissipation Product Project - The project has a total investment of 369.16 million yuan and aims to enhance production capacity for graphite heat dissipation materials and thermal interface materials [3]. - The project location in Vietnam offers advantages such as a favorable demographic profile, stable political environment, and integration into global supply chains, which will reduce logistics costs and improve responsiveness to customer needs [3][4]. - The project aligns with national development strategies and benefits from the growing demand for high thermal conductivity materials in consumer electronics [4][5]. Liquid Cooling Research Center - The project has an estimated investment of 31.59 million yuan and aims to improve the company's R&D capabilities in liquid cooling technology, targeting sectors like new energy vehicles and data centers [6][8]. - The project is supported by national policies promoting the development of data centers and computing power infrastructure, which enhances its market potential [9][11]. Information System Construction Project - The project involves an investment of 30.16 million yuan to upgrade the company's information management systems, enhancing operational efficiency and data utilization [10][11]. - The project is in line with national initiatives to promote digital transformation and improve enterprise management capabilities [11]. Working Capital Supplement - The company plans to allocate 35 million yuan to supplement working capital, which is essential for supporting operational needs and enhancing financial flexibility [12][13]. - This allocation is within the regulatory limits and aims to strengthen the company's financial position and market competitiveness [13][14]. Impact on Company Operations and Financial Status - The fundraising will enhance the company's asset structure and risk resistance, leading to improved financial stability and operational efficiency [14][15]. - The projects are expected to contribute to revenue growth and profitability, solidifying the company's position in the industry and supporting long-term strategic goals [15].