Fulin Precision Co., Ltd. (hereinafter referred to as "Fulin Precision" or the "Company") is a company listed on the Growth Enterprise Market of the Shenzhen Stock Exchange (hereinafter referred to as "SZSE"). To meet the capital needs for the Company's business development, enhance its capital strength and profitability, and 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 Issuance of Securities by Listed Companies" (hereinafter referred to as the "Registration Measures"), the Company plans to issue shares to specific objects, with the total amount of raised funds not exceeding RMB 3.1754911 billion (including the principal amount, which has deducted the portion of the previous fundraising that exceeded 30% of the total fundraising amount used for supplementing working capital). After deducting issuance expenses, the funds will be used for the annual production of 500,000 tons of high-end lithium iron phosphate, key components for new energy vehicle electric drive systems, integrated electric joints for robots, key components for intelligent chassis wire control systems, and key components for low-altitude flight vehicle power systems.
Unless otherwise specified in this report, the terms used herein have the same meaning as defined in the "Fulin Precision Co., Ltd. Proposal for Issuance of Shares to Specific Objects (Revised Draft)".
I. Background and Purpose of This Issuance
(I) Background of This Issuance
As a leading enterprise in the domestic automotive precision components sector, the Company's main business is upgrading from traditional precision processing to intelligent electric control and mechatronics. The main products are transitioning from applications in automotive engine components to new energy vehicle intelligent thermal management systems and components, new energy vehicle electric drive systems and components, and hybrid system components. Concurrently, the Company will continue to enhance its technological R&D and product innovation capabilities in the field of robot electric joints, actively deploy dedicated production capacity for intelligent joints of humanoid robot key components, promote the R&D and manufacturing level of humanoid robot key components, and enter the humanoid robot application and service field to meet customer and market demands, accelerating the formation of core capabilities and sustainable development capacity for the industrialization and scaling of the intelligent robot industry. Furthermore, based on the market demand and changes in the lithium iron phosphate industry, the Company is accelerating the production and sales of high-density lithium iron phosphate and the construction of upstream ferrous oxalate and lithium dihydrogen phosphate projects. The smooth implementation of new production capacity and upstream raw material projects will help the Company reduce costs, further increase market share, and enhance its overall industrial competitive advantage and influence.