I. Use of Raised Funds Plan
Shennan Circuits Co., Ltd. (hereinafter referred to as "the Company" or "Shennan Circuits") plans to issue shares to specific objects in 2026 (hereinafter referred to as "this Offering") with a total raised fund not exceeding RMB 488,196.88 million. After deducting issuance expenses, the funds will be used for the following projects:
| No. | Project Name | Implementing Entity | Total Project Investment | Proposed Use of Raised Funds |
|---|---|---|---|---|
| 1 | Wuxi Shennan Circuits AI Computing Power PCB Project | Wuxi Shennan | 453,630.84 | 360,000.00 |
| 2 | Supplement Working Capital | Shennan Circuits | 128,196.88 | 128,196.88 |
| Total | 581,827.72 | 488,196.88 |
The products manufactured by the projects funded by this offering are the Company's existing high-speed, high-density, multi-layer PCB products, mainly used in AI servers and switches. Before the raised funds for this private placement are in place, the Company will use its own funds to invest opportunistically based on market conditions and the progress of the investment projects, and will reimburse these funds once the raised capital is received.
If the net proceeds from this private placement, after deducting issuance expenses, are insufficient to meet the intended uses of the raised funds, the Company's board of directors and its authorized personnel will, within the scope of the investment projects and in accordance with relevant laws and regulations, adjust and finally decide on the specific investment projects, priorities, and investment amounts for each project based on the progress and funding needs of the investment projects. Any shortfall will be resolved by the Company through its own funds.
II. Feasibility Analysis of the Use of Raised Funds Investment Projects
(I) Wuxi Shennan Circuits AI Computing Power PCB Project
- Project Overview
| Project Name | Wuxi Shennan Circuits AI Computing Power PCB Project |
|---|---|
| Construction Location | Xinwu District, Wuxi City, Jiangsu Province |
| Implementing Entity | Wuxi Shennan Circuits Co., Ltd. |
| Construction Content | This project will mainly produce the Company's existing high-speed, high-density, multi-layer PCB products, used in AI servers, switches, and other fields. |
| Project Construction Period | 1 year |
| Total Project Investment | 453,630.84 million yuan |
| Proposed Use of Raised Funds Investment Amount | 360,000.00 million yuan |
- Necessity of the Project
(1) Contribute to the construction of AI computing power infrastructure and accelerate the development of new quality productive forces.
In March 2026, the "15th Five-Year Plan for National Economic and Social Development of the People's Republic of China" dedicated a chapter to "Enhancing Digital and Intelligent Development," defining computing power infrastructure as the core engine of new quality productive forces and the foundation of Digital China. It proposed key deployments such as building a national integrated computing power network and accelerating the construction of super-scale intelligent computing clusters. This offering's raised funds are intended to invest in the AI computing power electronic circuit product project. The core products are high-speed, high-density, multi-layer PCB products for AI servers and switches, precisely matching the technical requirements of intelligent computing infrastructure. By expanding high-end production capacity, it will contribute to China's computing power system construction and promote the development of new quality productive forces.
(2) Seize industry development opportunities and meet the growing demand from downstream customers.