Fundraising Plan - The company plans to raise a total of 187.53 million yuan through a targeted stock issuance, with a net amount of 187.53 million yuan allocated to specific projects [1][2] - The total investment for the projects is 366.09 million yuan, with the company adjusting the fundraising amount based on financial investments exceeding 10% of net assets [2][3] Project Details Precision Brake and Transmission Components Production Line - The project aims to expand the production scale of precision brake and transmission components, focusing on products like ball screw assemblies and hydraulic torque converters [3][4] - The company seeks to leverage the "domestic substitution" trend in the automotive industry, enhancing profitability amid rising demand for electric vehicles [4][5] - The project aligns with national policies supporting the development of key automotive components, indicating strong market potential [6][7] Precision Industrial Bearing Production Line - The project will establish a production line for needle roller bearings, addressing the growing demand in various industrial sectors [12][13] - The company aims to enhance customer retention by offering a wider range of bearing specifications to meet diverse client needs [13][14] - The project supports the national goal of increasing the localization of bearing production, enhancing competitiveness in both domestic and international markets [14][15] Market Outlook - The automotive parts industry in China is experiencing significant growth, with revenues reaching 4.41 trillion yuan in 2023, a year-on-year increase of 5.08% [7][8] - The brake system and transmission system sectors are projected to maintain a positive growth trajectory, driven by the overall development of the automotive industry [8] - The company has established a solid reputation and customer base, including partnerships with major international automotive parts suppliers, which will facilitate the successful implementation of the projects [18][19] Company Resources - The company possesses extensive experience in precision mechanical product design and manufacturing, supported by a skilled workforce and advanced manufacturing capabilities [16][17] - A robust research and development team, with over 170 personnel, ensures the company stays at the forefront of technological advancements in the industry [17][18] - The company has a well-established sales network and brand recognition, which will aid in the successful market entry of new products [18][19] Financial Impact - The fundraising will enhance the company's asset and business scale, providing strong financial support for ongoing operations [20] - While there may be a short-term decline in financial metrics such as return on equity, the long-term benefits from the projects are expected to improve profitability [20][21] - The projects are deemed necessary and feasible, aligning with the company's strategic goals and benefiting shareholders [21]

Core Viewpoint - The company, Southern Precision (002553), has received approval from the Shenzhen Stock Exchange for its application to issue shares to specific investors, pending final registration with the China Securities Regulatory Commission (CSRC) [1][2]. Fundraising Details - The total amount to be raised is not more than 201.76 million yuan, which will be allocated to two main projects: - Precision Brake and Transmission Component Production Line with an investment of 192.02 million yuan, intending to raise 125.82 million yuan - Precision Industrial Bearing Production Line with an investment of 174.07 million yuan, intending to raise 75.93 million yuan - The combined investment for both projects is 366.09 million yuan, with the total fundraising amount set at 201.76 million yuan [2]. Issuance Specifics - The shares to be issued are domestic listed ordinary shares (A-shares) with a par value of 1.00 yuan each - The issuance will adopt a competitive pricing method, with the price not lower than 80% of the average trading price over the 20 trading days prior to the pricing benchmark date [3]. - The issuance targets up to 35 specific investors, including various financial institutions and qualified domestic and foreign investors [2][3]. Impact on Company Structure - The issuance will not result in significant changes to the company's equity structure or affect the controlling status of the major shareholder, ensuring that control remains unchanged [3].

Group 1 - The company, Southern Precision (002553), announced an adjustment to the amount of funds to be raised through the issuance of A-shares to specific investors, aiming to facilitate the process [1] - The adjusted total amount to be raised will not exceed 202 million yuan, including the principal amount [1] - The funds will be allocated to the construction of production lines for precision braking and transmission components (125.82 million yuan) and precision industrial bearings (75.93 million yuan) [1] Group 2 - The issuance is subject to approval from the Shenzhen Stock Exchange and registration consent from the China Securities Regulatory Commission before implementation [1]