Qingdao Zhenghao Industrial Co., Ltd. (hereinafter referred to as "the Company" or "Zhenghao Industrial") was listed on the main board of the Shenzhen Stock Exchange in January 2021. To meet the capital needs for the Company's business development, enhance its capital strength, and improve 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"), the "Administrative Measures for the Registration of Issuance of Securities by Listed Companies" (hereinafter referred to as the "Administrative Measures for Registration of Issuance") and other relevant laws, regulations, normative documents, and the "Articles of Association", the Company plans to issue shares to specific objects. The number of shares to be issued shall not exceed 30% of the total share capital before this issuance. Calculated based on the Company's total share capital as of December 31, 2025, the number of shares to be issued to specific objects shall not exceed 24.525 million shares (inclusive). The total amount of capital to be raised from this issuance of shares to specific objects shall not exceed 698.0994 million yuan (inclusive), which will be used for the expansion project of agricultural machinery parts, the R&D and manufacturing project of micro-chain system hardware and software, and supplementary working capital, which is in line with the Company's business development direction and strategic layout. After the completion of this issuance, the Company's main business will remain unchanged, and there will be no business or asset integration plan resulting from this issuance.
Unless otherwise specified in this report, the terms used herein shall have the same meanings as defined in the "Proposal of Qingdao Zhenghao Industrial Co., Ltd. for Issuance of A Shares to Specific Objects in 2025 (Third Revision)".
I. Background and Objectives of This Issuance
(I) Background of This Issuance of Shares to Specific Objects
- Chain drive components are key components of modern industrial manufacturing, and national policies support the development of the industry.
The chain drive system is one of the three major basic methods of mechanical transmission and a key link in equipment manufacturing. It is widely used in motorcycles, automobiles, bicycles, industrial, agricultural, forestry, and marine equipment, and occupies an important position in the development of China's basic industrial system and manufacturing industry. The "15th Five-Year Plan" proposed to build a modern industrial system with advanced manufacturing as the backbone and accelerate the breakthrough of key components. As an important part of China's manufacturing industry and a basic supporting component essential for the development of emerging industries and future industries, the development level of chain drive components is directly related to China's independent control capability and industrial competitiveness in high-end manufacturing, and has received strong support from relevant policies. For example, the "Catalogue of Industries for Guiding Adjustment of Industrial Structure (2024 Edition)" issued by the National Development and Reform Commission clearly proposes to encourage the development of "automotive powertrains, construction machinery, and chains for large agricultural machinery" and other key mechanical transmission components.