Guangdong Yangshan United Precision Manufacturing Co., Ltd. (hereinafter referred to as "the Company") is a company listed on the Main Board of the Shenzhen Stock Exchange (hereinafter referred to as "SZSE"). To meet the needs of the Company's business development, further enhance its capital strength and operational capabilities, and achieve its strategic development plan, in accordance with the "Company Law of the People's Republic of China" (hereinafter referred to as "the Company Law"), the "Securities Law of the People's Republic of China" (hereinafter referred to as "the Securities Law"), and the "Administrative Measures for the Registration of Issuance of Securities by Listed Companies" (hereinafter referred to as "the Registration Measures"), and Article 9, Article 10, Article 11, Article 13, Article 40, Article 57, and Article 60 of the "Administrative Measures for the Registration of Issuance of Securities by Listed Companies", and the "Guiding Opinions on the Application of Securities and Futures Laws and Regulations - Securities and Futures Legal Application Opinions No. 18" (hereinafter referred to as "Legal Application Opinions No. 18"), and other relevant laws, regulations, and normative documents, as well as the "Articles of Association of Guangdong Yangshan United Precision Manufacturing Co., Ltd.", the Company plans to issue shares to specific objects through a simplified procedure, raising no more than RMB 20,000,000,000 (including principal). After deducting issuance expenses, the funds will be used for the following projects:
| Item No. | Project Name | Total Project Investment (RMB Million) | Amount of Raised Funds to be Invested (RMB Million) |
|---|---|---|---|
| 1 | Shunde Precision Intelligent Manufacturing South China Headquarters Base Construction Project | 31,000.00 | 12,200.00 |
| 2 | Compressor Core Component Precision Manufacturing Production Line Construction Project | 9,500.00 | 3,400.00 |
| 3 | Supplementary Working Capital | 4,400.00 | 4,400.00 |
| Total | 44,900.00 | 20,000.00 |
(Unless otherwise specified in this report, the terms used herein have the same meaning as in the "Guangdong Yangshan United Precision Manufacturing Co., Ltd. 2026 Annual Plan for Issuing Shares to Specific Objects Through a Simplified Procedure")
I. Background and Purpose of the Current Share Issuance (I) Background of the Current Issuance
- The Precision Mechanical Parts Industry Has Room for Continued Development
From the perspective of production processes, precision mechanical parts are first formed through casting, forging, and other methods to create corresponding castings and forgings, which are then processed with precision to form parts that meet the functional requirements of specific equipment. The manufacturing of precision mechanical parts is an important indicator of the overall level of a country's equipment manufacturing industry. The richness of its product categories, its functionality, and its technological level determine the overall performance, quality, and reliability of mechanical equipment.