Core Viewpoint - Changgao Electric New (002452.SZ) is accelerating its main business upgrade by issuing convertible bonds to raise up to 759 million yuan, focusing on three core production base projects to seize opportunities in the ultra-high voltage and smart grid upgrade market [1][2]. Financial Performance - For the first three quarters of 2025, Changgao Electric New achieved revenue of 1.202 billion yuan and a net profit attributable to shareholders of 203 million yuan, representing year-on-year growth of 6.22% and 11.97% respectively [1][4]. - The company's gross margin was 39.41%, up 3.33 percentage points year-on-year, while the net margin increased by 0.92 percentage points to 16.92% [1][4]. Research and Development - From 2021 to the first three quarters of 2025, the company invested a total of 431 million yuan in R&D, resulting in the completion of high-end product technology reserves such as 800kV GIS and 550kV GIL, along with 499 intellectual property achievements [1][5]. Project Funding and Utilization - The funds raised will be allocated to three key projects: Jinzhou Production Base Phase III, Wangcheng Production Base Upgrade, and Green Smart Distribution Industry Park, aimed at enhancing the main business of power transmission and transformation equipment [2][3]. - The Wangcheng Production Base Upgrade project is expected to achieve a post-tax internal rate of return of 14.51% and a payback period of 9.65 years [3]. Market Demand and Industry Outlook - The continuous economic development in China is driving stable growth in electricity demand, with the National Energy Administration reporting a 14.6% year-on-year increase in total installed power generation capacity to approximately 3.35 billion kilowatts by the end of 2024 [2]. - The company anticipates sustained growth in downstream demand due to the dual drivers of rising electricity demand and the need for equipment upgrades in the new power system [2]. Business Structure - As of the first half of 2025, the core business of power transmission and transformation equipment accounted for 93.65% of total revenue, with the company maintaining a balanced market layout across various regions [4][5].