Statement
The China Securities Regulatory Commission and the exchange do not guarantee the authenticity, accuracy, or completeness of the application documents and disclosed information regarding this issuance, nor do they make substantive judgments or guarantees regarding the issuer's profitability, investment value, or investor returns. Any contrary statements are false representations. According to the Securities Law, after securities are legally issued, the issuer is responsible for changes in operations and earnings. Investors must independently assess the issuer's investment value and make their own investment decisions, bearing the investment risks arising from changes in operations, earnings, or securities prices after the legal issuance of securities.
Major Matters Reminder
The company particularly reminds investors to carefully read the full text of this prospectus before making investment decisions and pay special attention to the following important matters.
Special Risk Reminders
The company urges investors to carefully read the full text of "Section 3 Risk Factors" in this prospectus and pay special attention to the following risks:
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Risk of Inability to Absorb New Production Capacity
The products of this fundraising project are mainly used in the power supply and distribution field of data centers. After the completion of this project, the company will have a production capacity of 6,240 sets of HVDC systems and 57,000 HVDC power modules. However, considering the construction period, it is expected to reach 40% and 70% of capacity in the third and fourth years, respectively, and full capacity in the fifth year. If there are significant adverse changes in industry, policy, downstream demand, or technology routes, leading to a decline in customer orders or insufficient growth, there is a risk that the new production capacity will not be absorbed. -
Risk of Project Benefits Not Meeting Expectations
The funds raised will be used for the "Research and Production Project of Power Supply and Distribution Systems and Modules for Data Centers" and to supplement working capital. The company has conducted thorough feasibility studies for this project, but the analysis is based on current market conditions, customer demand, competition, and technology. Key parameters such as sales price, cost, and gross margin may deviate from actual conditions after project completion. Given the current low overall gross margin of the company's HVDC products, the expected annual revenue after reaching full production is RMB 1.026 billion, with a gross margin of 31.86%. If cost control or changes in sales models do not meet expectations, the project may fail to achieve expected economic benefits, adversely affecting overall performance. -
Risk of Fluctuations in Gross Margin
During the reporting period, the company's main business gross margins were 33.09%, 27.66%, and 24.51%, showing a downward trend due to declining margins in new energy power conversion products and custom power supply and testing services. If industry competition intensifies and product prices continue to decline, and the company fails to respond effectively through new product development or cost management, there is a risk of further declines in gross margins, affecting profitability. -
Risk of Performance Fluctuations
The company's net profit attributable to the parent company during the reporting period was RMB 102.571 million, RMB 23.9407 million, and RMB 40.1533 million, with changes of 131.26%, -76.66%, and 67.72% for 2023, 2024, and 2025, respectively. The net profit after deducting non-recurring gains and losses was RMB 84.0922 million, RMB 19.0441 million, and RMB 34.2409 million, with changes of 170.46%, -77.35%, and 79.80%. The fluctuations are mainly due to intensified competition in the new energy vehicle industry and changes in procurement policies. If competition worsens or procurement policies change adversely, the company may face further declines in net profit.