Group 1 - Xiangtan Electric Manufacturing Co., Ltd. (referred to as "the company") announced a private placement of approximately 150 million A-shares at a price of 13.3 yuan per share, raising a total of about 2 billion yuan [1] - The funds raised will primarily be used for the research and industrialization of aviation electrical systems, the development of magnetic levitation bearing high-speed motor systems, and to supplement working capital [1] - The company is focusing on high-efficiency and energy-saving motors, with successful applications in multiple enterprises, indicating a strong market demand for magnetic levitation bearing high-speed motor systems [1] Group 2 - The development of the low-altitude economy is driving continuous advancements in aviation vehicles and their power systems, with electrification and new energy aircraft being key development directions [1] - The magnetic levitation bearing high-speed motor system is expected to become a new growth point for the company's business due to its advantages such as low energy consumption, low noise, and long lifespan [1] - Industry experts highlight that leading companies are seizing market opportunities in advanced motor and electrical systems, overcoming technical challenges, and utilizing capital market financing tools to rapidly convert technological achievements into marketable products [1]

Core Viewpoint - Xiangtan Electric Machine Co., Ltd. (referred to as "Xiangdian Co."), announced a private placement of approximately 150 million A-shares at a price of 13.3 yuan per share, raising about 2 billion yuan to fund projects in aviation electrical systems and magnetic levitation bearing high-speed motor systems [1][2] Group 1: Fundraising and Projects - The funds raised will primarily be used for the research and industrialization of aviation electrical systems, magnetic levitation bearing high-speed motor systems, and to supplement working capital [1] - The aviation electrical systems project aims to serve the growing low-altitude economy, which is driving advancements in aviation vehicles and their power systems [1] - The magnetic levitation bearing high-speed motor system is expected to become a new growth point for the company, offering advantages such as low energy consumption, low noise, and long lifespan [1] Group 2: Market Demand and Strategic Direction - There is significant potential demand for magnetic levitation bearing high-speed motor systems among enterprises, with a focus on overcoming technical challenges in development and application [2] - The market for high-speed motors is expected to grow due to increasing industrial automation and environmental protection requirements, highlighting the strategic importance of investing in this area [2] - Leading companies are leveraging market opportunities and financing tools to rapidly convert technological achievements into advanced production capacity, benefiting shareholders and contributing to high-level electrification efforts [2]

Company Overview - Xiangtan Electric Manufacturing Co., Ltd. is planning to issue A-shares to specific investors, with a registered capital of RMB 1,325,406,445.00 and listed on the Shanghai Stock Exchange under the stock code 600416 [1][19]. - The company specializes in the manufacturing of electric motors, special products, and urban rail transit equipment, categorized under the electrical machinery and equipment manufacturing industry [19]. Issuance Details - The company intends to issue no more than 30% of its total share capital, amounting to 39,762.19 million shares, to specific investors, with a total fundraising target of up to RMB 200,000.00 million [4][6]. - The issuance will be conducted through a private placement to no more than 35 specific investors, including securities investment funds, securities companies, insurance institutions, and other legal entities [2][3]. Fund Utilization - The raised funds will be allocated to the development and industrialization of aviation electrical systems and magnetic levitation bearing high-speed motor systems, as well as to supplement working capital [5][6]. - The total investment for the aviation electrical system project is estimated at RMB 231,297.13 million, with the fundraising amount planned at RMB 200,000.00 million [5]. Shareholder Structure - As of June 30, 2025, the controlling shareholder, Xiang Electric Group, holds 13.66% of the company's shares, while the combined holdings of Xiang Electric Group and its concerted action partner, Xingxiang Group, amount to 30.70% [17][18]. - The actual controller of the company is the Hunan Provincial State-owned Assets Supervision and Administration Commission [17]. Industry Characteristics - The electric motor manufacturing industry is regulated by the National Development and Reform Commission and the Ministry of Industry and Information Technology, focusing on energy efficiency and technological innovation [19]. - The industry is characterized by a strong emphasis on energy-saving technologies and compliance with national standards for equipment efficiency [19].

Core Viewpoint - Xiangdian Co., Ltd. has received approval for a non-public stock issuance aimed at raising up to RMB 200 million for various projects and working capital [1][2]. Group 1: Stock Issuance Details - The non-public stock issuance was approved on July 18, 2025, and will involve issuing shares to no more than 35 specific investors [1][4]. - The total amount to be raised is planned to be RMB 200 million, which will be allocated to the development and industrialization of an aviation electrical system and a magnetic levitation bearing high-speed motor system, as well as to supplement working capital [2][3]. Group 2: Project Investment Breakdown - The investment breakdown for the projects includes: - Aviation electrical system development: Total investment of RMB 118.33 million, with RMB 97 million from the raised funds [3]. - Magnetic levitation bearing high-speed motor system: Total investment of RMB 61.96 million, with RMB 52 million from the raised funds [3]. - Supplementing working capital: RMB 51 million from the raised funds [3]. - The total investment across all projects amounts to RMB 231.30 million, with the raised funds covering RMB 200 million [3]. Group 3: Shareholder and Control Information - As of the date of the fundraising prospectus, the controlling shareholder, Xiangdian Group, and its concerted party, Hunan Xingxiang Investment Holding Group, hold a combined 40.69 million A-shares, representing a 30.70% stake [5]. - The actual controller of the company remains the Hunan Provincial State-owned Assets Supervision and Administration Commission after the issuance [5].

Core Viewpoint - The document provides a supplementary legal opinion regarding Xiangtan Electric Motor Co., Ltd.'s issuance of A-shares to specific targets for the year 2024, detailing the legal compliance and project funding aspects related to the issuance [1][2]. Summary by Sections Project Funding - The fundraising projects include the "Aerospace Electrical System Series Development and Industrialization Project" and the "Maglev Bearing High-Speed Motor System R&D and Industrialization Project," which aim to expand the company's permanent magnet technology into the aerospace motor sector and apply high-speed motor technology in maglev bearing systems. Both projects have not yet received environmental impact assessment (EIA) approvals [2][3]. Environmental Impact Assessment - The Xiangtan City Ecological Environment Bureau approved the environmental impact report for the "Aerospace Electrical System Series Development and Industrialization Project" on April 16, 2025. The project will be implemented by the company and its wholly-owned subsidiary, Xiangdian Electric [4][5]. Share Pledge Situation - As of the date of the supplementary legal opinion, the controlling shareholder, Xiangdian Group, has pledged a total of 177 million shares, accounting for 97.80% of its holdings in the company. The pledged shares are primarily used for financing production operations and supplementing working capital [5][6][11]. Financing and Risk Management - The pledged shares have been used for various financing purposes, including special product R&D and manufacturing projects. The financing amounts and their intended uses are detailed, with a significant portion allocated to supplementing working capital [6][11][12]. Control Stability Measures - The controlling shareholder, Xiangdian Group, maintains a significant shareholding in the company, ensuring stable control. Measures have been implemented to monitor stock price fluctuations and manage potential risks associated with share pledges [15][16]. Management and Compliance - The current senior management of the company does not hold any positions in the controlling shareholder beyond board roles, ensuring compliance with relevant regulations regarding independence from the controlling entity [20][21]. Real Estate Involvement - The company has engaged in investment real estate activities, acquiring properties through debt restructuring rather than development. These properties are leased out to enhance economic benefits, although the company does not possess real estate development qualifications [22][23].