Core Viewpoint - Defu Technology (301511.SZ) is accelerating its efforts to become a leader in the global copper foil industry through a planned A-share issuance to raise up to 1.93 billion yuan for strategic acquisitions and operational enhancements [1][2]. Group 1: Fundraising and Strategic Initiatives - The company plans to issue shares to no more than 35 specific investors, raising a maximum of 1.93 billion yuan, with net proceeds allocated entirely to the acquisition of 100% equity in Luxembourg Copper Foil, electronic chemical products for copper foil additives, and to supplement working capital [2][3]. - Of the total fundraising, 1.43 billion yuan will be directed towards the acquisition of Luxembourg Copper Foil, which is a leading global high-end electronic circuit copper foil company [2][3]. - The electronic chemical products project has a total investment of 400 million yuan, with 200 million yuan from the fundraising, aimed at producing 4,400 tons of electronic chemicals annually, enhancing the company's control over upstream raw materials [3]. Group 2: Financial Performance and Growth - In the first half of 2025, the company achieved revenue of 5.299 billion yuan, a year-on-year increase of 66.82%, and a net profit of 38.71 million yuan, marking a 136.71% increase and a turnaround from previous losses [1][5]. - The company's total assets reached 17.6 billion yuan by the end of June 2025, reflecting a year-on-year growth of 16.71% and setting a historical high [1][6]. - The company has shown a consistent trend of revenue growth and improving profitability, with revenues of 6.381 billion yuan, 6.531 billion yuan, and 7.805 billion yuan projected for 2022, 2023, and 2024 respectively [5]. Group 3: Research and Development - Defu Technology has invested a total of 546 million yuan in research and development over the past three and a half years, with R&D expenditures increasing each year, representing 1.73% to 2.35% of total revenue during this period [4][5]. - The company has successfully developed new products such as porous copper foil and atomized copper foil, which are now being tested and supplied to multiple downstream customers [5]. Group 4: Market Position and Capacity - The company's production capacity has reached 175,000 tons per year, placing it among the top tier in the domestic industry, with a continuously increasing market share [6]. - From 2020 to 2024, the company's total assets grew from 2.994 billion yuan to 14.88 billion yuan, a remarkable increase of 396.99% [6].

Group 1 - The company plans to issue new shares with a pricing benchmark set at 80% of the average stock price over the last 20 trading days prior to the issuance [1] - The total number of shares issued will not exceed 30% of the company's total share capital before the issuance, with the final number determined by the total amount of funds raised and the issuance price [1] - The newly issued shares cannot be transferred within six months from the end of the issuance [1] Group 2 - The total investment for the Luxembourg copper foil acquisition project is approximately 1.445686 billion, with 1.43 billion allocated from the raised funds [2] - Luxembourg copper foil is a leading global enterprise in high-end electronic circuit copper foil, with core products including HVLP and DTH, which are used in AI server data centers and 5G base stations [2] - In 2024, the revenue share from HVLP and DTH products is expected to be around 53%, maintaining long-term cooperation with top PCB companies [2] Group 3 - An additional 200 million will be invested in the electronic chemicals project for copper foil additives, with a total investment of 400 million [3] - The project aims to produce 4,400 tons of electronic chemicals annually, with core products being key raw materials for lithium battery copper foil additives, enhancing the company's control over upstream materials [3] - The remaining 300 million will be used to supplement working capital, improving the company's financial structure, which currently has a debt ratio of 73.55% as of June 30, 2025 [3] Group 4 - The issuance will not change the company's control structure, with the controlling shareholder maintaining a 25.83% stake post-issuance [3] - The company views this capital increase as a strategic move for mergers and acquisitions, aiming to lead in both lithium battery and electronic circuit copper foil sectors, breaking the import monopoly in high-end copper foil [3] - The investment in the electronic chemicals project is expected to enhance the company's integrated competitive advantage [3]