Jiangsu Zhongchao Holdings Co., Ltd. (hereinafter referred to as "Zhongchao Holdings" or "the Company") aims to meet the capital needs for its business development, enhance its capital strength, and improve its profitability. 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 Securities Issuances by Listed Companies" (hereinafter referred to as the "Registration Measures"), and other relevant laws, regulations, and normative documents, this "Jiangsu Zhongchao Holdings Co., Ltd. 2023 Plan for Issuing Shares to Specific Objects - Argumentation and Analysis Report (Fifth Revision)" has been compiled. (Unless otherwise specified in this report, the terms used herein have the same meaning as defined in the "Jiangsu Zhongchao Holdings Co., Ltd. 2023 Plan for Issuing Shares to Specific Objects (Fifth Revision)")
I. Background and Objectives of the Issuance of Shares to Specific Objects
(I) Background of the Issuance
- The bottleneck in key core technologies for high-temperature alloy precision castings severely restricts the development of China's "two engines" industry.
Aviation engines are hailed as the "diamond on the crown" of modern industry and the "heart of the aircraft." They are the most crucial components of an aircraft, the source of its flight power, and are recognized globally as products with the highest overall technological level, the strictest core technology blockade, and the most complex structures in the industry.
[Chart: Diagram of a turbofan engine]
Gas turbines are efficient power devices that use high-temperature gas to drive a rotating impeller. They are mainly used in power generation, ship propulsion, and industrial drive, offering advantages such as high efficiency and rapid response.
Aviation engines and gas turbines (collectively referred to as "two engines") are strategic core equipment related to national security and economic development, and they are important symbols of national technological strength. The "two engines" belong to the same gas turbine engine technology system, sharing common technical genes in their core thermodynamic cycles and key component designs. However, due to differences in application scenarios, they have evolved into distinct engineering branches. Both extensively use high-temperature alloy materials and their precision castings for hot-end components.
High-temperature alloys (also known as heat-resistant alloys or superalloys) are special nickel-based, cobalt-based, or iron-based metal materials that can maintain high strength, excellent creep resistance, oxidation resistance, and hot corrosion resistance for extended periods under high temperatures (above 600°C) and complex stress environments. With their core advantages of high-temperature stability, corrosion resistance, and reliable service life, high-temperature alloy precision castings are widely used in modern aviation engines, gas turbines, spacecraft, and rocket engines, and have also expanded into civil applications such as nuclear energy devices, chemical equipment, medical devices, and automotive turbochargers.