Core Viewpoint - The company has decided to reduce the investment scale and adjust the construction period of the "Xianghe Industrial Park High-end Capacitor Base Project" due to changes in market demand and its own business planning [4][5][7]. Fundraising Overview - The company raised a total of RMB 4,999,999,910.00 through a non-public stock issuance, with a net amount of RMB 4,971,231,532.86 after deducting fees [1]. - The funds are stored in a dedicated account with regulatory agreements in place to protect investor interests [2][3]. Project Investment Details - The total planned investment for the Xianghe project was originally RMB 750,516,000, which has now been adjusted to RMB 527,181,460 [4]. - The commitment for the raised funds remains at RMB 397,698,520, while the construction period has been extended from 52 months to 64 months [4]. Reasons for Investment Scale Reduction - The decision to reduce the investment scale is based on the rapid development of the industry and changes in the macroeconomic environment, leading to a shift in demand within the consumer electronics sector [4][5]. - The company aims to focus on high-end markets such as automotive electronics and industrial control, while cautiously managing the production capacity for small-sized MLCCs [5][6]. Impact on the Company - The reduction in investment scale is expected to enhance management efficiency and resource allocation, aligning with the company's long-term development strategy [6][7]. - The company assures that this decision will not adversely affect its normal operations and complies with relevant regulations [6][7]. Review and Approval Process - The proposal to reduce the investment scale has been approved by the company's board and supervisory committee, and it will be submitted for shareholder approval [7].

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company reported a strong performance driven by AI, with a revenue of approximately 7.38 billion yuan in 2024, representing a year-on-year growth of about 28.8%. The net profit attributable to shareholders was approximately 2.19 billion yuan, up by about 38.6% year-on-year [6] - In Q1 2025, the company achieved a revenue of approximately 1.83 billion yuan, a year-on-year increase of about 17.24%, and a net profit of approximately 533 million yuan, reflecting a year-on-year growth of about 23.02% [6] - The company has made significant advancements in MLCC production technology, expanding its product applications in various fields, including automotive, industrial, and consumer electronics [7] - The company is expected to see net profits of 2.73 billion yuan, 3.26 billion yuan, and 3.88 billion yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 24.32, 20.36, and 17.13 [8] Financial Performance Summary - In 2024, the company achieved a gross margin of approximately 43.0%, an increase of about 3.2 percentage points year-on-year [7] - The company maintained reasonable control over its operating expenses, with sales, management, and R&D expense ratios of 1.1%, 5.6%, and 7.9% respectively, all showing a year-on-year decline [7] - The company’s revenue is projected to grow to 9.04 billion yuan in 2025, with a year-on-year growth rate of 22.5% [13] - The net profit attributable to shareholders is expected to grow at a rate of 24.7% in 2025, reaching 2.73 billion yuan [13]