Core Viewpoint - Kewan Technology has decided to terminate its plan to issue convertible bonds to unspecified investors, originally intended to raise up to 500 million yuan for a new lithium battery composite materials project [1][3]. Group 1: Termination of Bond Issuance - The company has actively communicated with intermediaries since applying for the bond issuance and, after careful consideration of its development plans and actual circumstances, has decided to withdraw the application [3]. - The termination of the bond issuance will not significantly impact the company's operations and will not harm the interests of the company or its shareholders, particularly minority shareholders [3]. Group 2: Project Details - The proposed bond issuance aimed to raise a total of 500 million yuan, with the net proceeds intended for the first phase of the lithium battery composite materials project [3][4]. - Upon full production, the project is expected to achieve an annual production capacity of 95 million square meters of composite aluminum foil, with a construction period of four years and full production expected in the fifth year [3]. Group 3: Financial Performance - The company's recent financial performance has shown significant pressure, with revenues of 905.29 million yuan, 723.27 million yuan, and 782.65 million yuan from 2022 to 2024, and 419.54 million yuan in the first half of 2025, indicating a downward trend [4]. - Corresponding net profits for the same periods were 158.48 million yuan, 95.33 million yuan, and 66.41 million yuan, with 25.21 million yuan in the first half of 2025, reflecting a weakening profitability [4].

Core Viewpoint - The company, 可川科技, has decided to terminate its plan to issue convertible bonds, originally intended to raise up to 500 million yuan for a lithium battery composite materials project, after careful consideration of its development strategy and actual circumstances [1][2]. Group 1: Company Decision - The convertible bond issuance plan was initiated in February 2025 and had received acceptance from the Shanghai Stock Exchange, undergoing multiple rounds of review [2]. - The decision to terminate the bond issuance aims to further optimize the company's capital allocation and project layout [2]. Group 2: Financial Performance - The company's recent financial performance has shown significant pressure, with operating revenues of 905.29 million yuan in 2022, 723.27 million yuan in 2023, and 782.65 million yuan in 2024, followed by 419.54 million yuan in the first half of 2025, indicating a downward trend [2]. - The net profit attributable to the parent company has also decreased, with figures of 158.48 million yuan in 2022, 95.33 million yuan in 2023, 66.41 million yuan in 2024, and 25.21 million yuan in the first half of 2025 [2]. - The overall gross margin has declined from 27.25% to 17.67% during the reporting period, primarily due to intensified industry competition and fluctuations in raw material prices [2]. - The company's asset-liability ratio has remained within the range of 27% to 33%, with net cash flow from operating activities showing significant volatility, recorded at 192.81 million yuan in 2023 and slightly decreasing to 182.04 million yuan in 2024 [2].

Core Points - 可川科技 has announced the termination of its plan to issue convertible bonds to unspecified objects and has withdrawn the application documents [1] - The decision was made after careful consideration of the company's development plans and actual circumstances, following thorough communication with relevant parties [1] - The termination of the bond issuance will not have a significant adverse impact on the company's operations and will not harm the interests of the company and its shareholders, especially minority shareholders [1] Summary by Sections - **Bond Issuance Details** - The company initially planned to raise up to 500 million yuan through the issuance of convertible bonds, with net proceeds intended for a lithium battery new composite materials project [2] - The total investment for the lithium battery new composite materials project (Phase I) is 748.38 million yuan, with 500 million yuan expected to be raised from the bond issuance [3] - **Previous Financial Activities** - 可川科技 was listed on the Shanghai Stock Exchange on October 11, 2022, with an initial public offering of 17.2 million shares at a price of 34.68 yuan per share [3] - The total amount raised during the IPO was 596.496 million yuan, with a net amount of 527.96 million yuan allocated for various projects including functional components production base construction and R&D center projects [3] - The company has a history of stock bonus issues and cash dividends, including a 4-for-10 stock bonus and a pre-tax dividend of 2.5 yuan on June 17, 2025 [4]