The company plans to issue shares to specific objects to raise funds to enhance its capital strength and profitability, and to invest in the Avary AI server and high-speed optical module high-density interconnect multilayer board project. The company's feasibility analysis of the use of raised funds for this issuance to specific objects is as follows:
I. Use of Raised Funds Plan
The total amount of funds to be raised in this issuance shall not exceed RMB 960,000.00 million (inclusive). The net amount after deducting issuance expenses will be used for the following project:
| No. | Project Name | Total Project Investment | Proposed Raised Funds Investment |
|---|---|---|---|
| 1 | Avary AI server and high-speed optical module high-density interconnect multilayer board project | 1,273,001.16 | 960,000.00 |
Unit: RMB million
Before the raised funds for this issuance are in place, the company will use its own funds for advance investment based on the actual progress of the project. The funds will be replaced according to the procedures stipulated by relevant laws and regulations after the raised funds are in place. If the net amount of raised funds from this issuance is less than the proposed investment amount, the shortfall will be resolved by the company's own funds.
II. Analysis of the Project Situation, Necessity, and Feasibility of Raised Funds Investment
(I) Project Situation
The project to be invested with raised funds is the Avary AI server and high-speed optical module high-density interconnect multilayer board project. The specific situation is as follows:
(1) Basic Project Information
The project will rely on the company's existing industrial park factory buildings and will construct new factory buildings and supporting public facilities. It will introduce advanced production equipment such as molding equipment, copper plating equipment, drilling equipment, lamination equipment, automation equipment, solder mask equipment, and quality inspection equipment. It will also configure high-quality production, technical, and management personnel to build an intelligent PCB manufacturing base for AI servers and high-speed optical modules.
(2) Project Investment Estimate
The total planned investment for this project is RMB 1,273,001.16 million, mainly including construction engineering costs, production equipment purchase costs, etc. The project plans to use RMB 960,000.00 million of raised funds for investment.
(3) Project Implementation Entity and Location
The implementation entity for this project is Avary Precision Electronics (Huai'an) Co., Ltd., a wholly-owned subsidiary of the company. The implementation location is No. 8 Pengding Road, Huai'an Economic and Technological Development Zone, Huai'an City, Jiangsu Province.
(4) Project Economic Benefit Evaluation
The project has good economic benefits.
(5) Project Approval and Filing Status
As of the announcement date of this report, the project has obtained the Jiangsu Province Investment Project Filing Certificate (Filing No.: Huai Guan Fa Gai Shen [2026] No. 182). Environmental impact assessment, energy conservation assessment, and other relevant procedures are being processed.
(II) Necessity of Project Implementation
- Enhance the Company's High-End PCB Production Capacity and Meet the Explosive Market Demand for AI Computing Power
AI computing power hardware is the underlying support for the intelligent economy and computing-electricity synergy. AI servers and supporting computing infrastructure such as switches have higher requirements for PCB performance, materials, and processes. As the core hardware of AI computing infrastructure, AI servers typically need to be equipped with multiple high-performance GPUs or CPUs, which impose stringent requirements on the number of PCB layers, materials, and manufacturing processes. High-speed optical modules are responsible for the low-latency transmission of massive data within computing clusters, and also require stringent standards for high-frequency materials and precision processes of PCBs.