Core Viewpoint - The article discusses the growing trend of convertible bond issuance in China, highlighting its role as a financial lever for companies to invest in new productive forces, particularly in technology innovation and capital empowerment [2][3]. Group 1: Convertible Bond Issuance - Several companies, including Jinpan Technology, Changgao Electric, Huichuangda Technology, and Jinan Shengquan Group, have announced plans to issue convertible bonds to raise funds for projects in data center power supply, smart manufacturing of power equipment, and new energy battery materials [5][6]. - Jinpan Technology plans to raise a total of 1.6715 billion yuan through a 6-year convertible bond for projects related to data center power modules and energy-efficient power equipment [5]. - Changgao Electric aims to raise approximately 750 million yuan for projects focused on enhancing its production capabilities in the electric power equipment sector [5]. - Huichuangda intends to raise up to 650 million yuan for projects related to power batteries and energy storage systems, as well as to supplement working capital [5]. - Shengquan Group plans to issue 2.5 billion yuan in convertible bonds, with 2 billion yuan allocated for green energy battery material projects [6]. Group 2: Market Trends and Opportunities - The issuance of convertible bonds indicates a significant capital flow towards emerging industries, particularly in the technology and manufacturing sectors [8][9]. - The data center market is experiencing rapid growth, with power supply modules becoming increasingly dominant, suggesting a substantial future market space [8]. - Shengquan Group's project aims to produce 10,000 tons of silicon-carbon anode materials and 15,000 tons of porous carbon, addressing the rising demand for high-energy-density batteries in electric vehicles and consumer electronics [9]. - Despite an overall contraction in the convertible bond market in 2025, bonds in the technology and manufacturing sectors are highly sought after, reflecting a focus on supporting technological innovation and green transformation [9]. Group 3: Financial and Governance Aspects - The current interest rate reduction cycle provides an opportune environment for companies to issue convertible bonds, as it lowers financing costs [11]. - Convertible bonds offer a dual benefit of fixed income and potential equity conversion, allowing companies to manage shareholder dilution more gradually compared to direct stock issuance [11]. - The issuance of convertible bonds is accompanied by increased external oversight, requiring companies to demonstrate effective use of raised funds and maintain transparency in governance [11][12]. - Companies are strategically aligning their convertible bond projects with their future development plans to enhance core competitiveness and profitability [12][13].

Core Viewpoint - Jinpan Technology (688676.SH) plans to issue convertible bonds to raise funds for various projects, including smart manufacturing and working capital, with a total amount not exceeding 1.6715 billion yuan [1][2]. Group 1: Convertible Bond Issuance - The convertible bonds will be issued at a face value of 100 yuan each, with a term of 6 years from the issuance date [1]. - The total amount to be raised from the issuance is capped at 1.6715 billion yuan, which will be allocated to specific projects and working capital [2][4]. - The initial conversion price will be determined based on the average stock price over the 20 trading days prior to the announcement [1][2]. Group 2: Fund Allocation - The funds will be used for several projects, including: - Data center power modules and energy-efficient power equipment manufacturing, with a total investment of approximately 523.42 million yuan, of which 473.37 million yuan will be funded by the raised capital [3][4]. - High-efficiency liquid-immersed transformers and amorphous alloy core manufacturing, with a total investment of about 734.22 million yuan, with 616.53 million yuan from the raised funds [4]. - R&D office building construction in Tongxiang, with an investment of 82.97 million yuan, funded entirely by the raised capital [4]. - Supplementing working capital with 501.40 million yuan [4]. Group 3: Previous Fundraising and Financial Performance - Jinpan Technology has previously raised funds through convertible bonds, totaling approximately 976.70 million yuan in a prior issuance [5]. - The company reported a revenue of 1.343 billion yuan for the first quarter of 2025, reflecting a year-on-year increase of 2.90%, and a net profit attributable to shareholders of 107.24 million yuan, up 13.32% [7][8]. - The net cash flow from operating activities for the same period was 135 million yuan [8].