Stock Code: 300005 Stock Abbreviation: Toread
Toread Holdings Group Co., Ltd.
2025 Feasibility Analysis Report on the Issuance of Shares to Specific Targets (Third Revised Draft)
June 2026
Toread Holdings Group Co., Ltd. (hereinafter referred to as "Toread" or the "Company") is a company listed on the ChiNext market of the Shenzhen Stock Exchange. To meet the capital requirements for business development, expand the scale of operations, and further enhance the Company's capital strength and profitability, the Company has prepared this feasibility analysis report for the issuance of shares to specific targets (hereinafter referred to as "this Issuance") in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, and the Administrative Measures for the Registration of Securities Issuance by Listed Companies.
Unless otherwise specified, terms used in this report have the same meanings as those defined in the "Toread Holdings Group Co., Ltd. 2025 Plan for the Issuance of Shares to Specific Targets (Third Revised Draft)."
I. Background and Purpose of this Issuance
(I) Background of this Issuance
- Intensified competition in the outdoor industry and strengthening of product innovation and R&D empowerment
As the domestic outdoor market becomes increasingly concentrated and competitive, and with well-known foreign brands having established strong reputations and broad market foundations, the outdoor business faces significant competitive pressure. The Company plans to leverage its years of industry experience, focusing on the three core strategies of "product innovation, brand empowerment, and channel deepening" to drive business growth and value appreciation. In terms of technical R&D, the Company will accelerate the development of lightweight, professional, and intelligent products, continuously improve product performance and scenario adaptability, and coordinate the full-cycle management of major projects. While ensuring efficient project implementation, the Company will strengthen technological breakthroughs and platform technology accumulation to drive the upgrading of its technical reserve system and the transformation of innovative achievements. It will also actively promote the construction of innovative research consortia to overcome key core technologies, promote industrial development, and increase the speed of technology transformation.
- Urgent demand for chip self-sufficiency
In recent years, to actively address the "chokepoint" challenges in the chip industry, the government has introduced multiple policies to promote the development of the domestic integrated circuit industry, which has entered a stage of rapid growth. According to data from the National Bureau of Statistics, China's integrated circuit production has grown from 108.8 billion units in 2015 to 451.6 billion units in 2024, with a compound annual growth rate of 17%. Affected by the chip shortage, China's chip production increased by nearly 38% year-on-year in 2021. Although the industry experienced a destocking cycle in 2022, the market began to recover in 2023, and production in 2024 increased by more than one-quarter compared to 2021. Despite the rapid development of the domestic integrated circuit industry, the strong demand in related industries means that domestic supply is insufficient, requiring large-scale imports, and the overall dependence on foreign sources remains high. Considering the strategic pillar role of the integrated circuit industry in national economic and social development, the demand for chip self-sufficiency remains urgent.
- Market-oriented approach to continuously explore chip application fields
In recent years, the Company's chip business has developed well with rapid growth. The Company will take "technology-driven, global collaboration, and ecological aggregation" as its core strategy, focus on the core field of display chip design, strengthen technical R&D and product innovation, continuously consolidate its competitive advantage in the display chip field, and extend its layout to high-value-added areas.
(II) Purpose of this Issuance
- Continuously promote the "Outdoor + Chip" dual-main-business strategy and enhance the Company's core competitiveness