Statement
The China Securities Regulatory Commission and the exchange's decisions or opinions regarding this issuance do not guarantee the authenticity, accuracy, or completeness of the application documents and disclosed information, nor do they provide substantial 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, make their own investment decisions, and bear the investment risks arising from changes in the issuer's operations and earnings or fluctuations in securities prices after legal issuance.
Major Matters Reminder
The company particularly reminds investors to carefully read the main content of this prospectus before making investment decisions and pay special attention to the following important matters.
1. Special Risk Reminder
The company urges investors to 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 Investment Project Benefits Not Meeting Expectations The funds raised will be used for the "Zhuhai Shuo Hong Annual Production of 300,000 Square Meters of Intelligent Circuit Products Construction Project," "Allfavor Intelligent Thailand Printed Circuit Board Production Base Construction Project," and to supplement working capital. The company has conducted careful and thorough feasibility studies for these projects, but the feasibility analysis is based on current market conditions, customer demand, existing technology, and judgments on technological development trends. Key parameters such as sales prices, costs, and gross profit margins in the benefit calculations may deviate from actual conditions after project completion. During the implementation of the fundraising projects, the company may face uncertainties such as policy changes, market fluctuations, adverse international situations, and internal management issues, which could lead to risks of the projects not being implemented as planned, affecting the company's operating performance. The expected gross profit margins for the projects are estimated to be 24.70%-24.81% for the Zhuhai project and 18.73%-18.82% for the Thailand project. The company's main business gross profit margins during the reporting periods were 15.79%, 11.60%, 12.42%, and 13.99%. The expected gross profit margins for the fundraising projects are higher than the company's main business gross profit margins due to differences in product structure and application fields, as well as reduced outsourcing processing needs and costs. If the actual sales prices or volumes of higher-margin products do not meet expectations due to downstream demand changes or order structure adjustments, there is a risk that the gross profit margins achieved after the projects are completed may be lower than expected.
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Risk of New Production Capacity Not Being Absorbed The company's capacity utilization rates during the reporting periods were 82.68%, 77.54%, 87.40%, and 87.26%. The fundraising projects will add a total of 550,000 square meters of annual production capacity. If significant adverse changes occur in industry, policy, downstream demand, or technology during the construction period, leading to a decline in customer orders or insufficient growth, there is a risk that the new production capacity may not be absorbed.
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Risk of Previous Fundraising Projects Not Meeting Expectations The previous fundraising project "Annual Production of 480,000 Square Meters of High-Frequency, High-Speed, Multi-Layer, and High-Density Printed Circuit Board Production Line Expansion Project" reached its intended usable state in December 2022. The actual benefits for 2023, 2024, and January-September 2025 were 12.2741 million, 16.7426 million, and 27.7406 million yuan, respectively, which did not meet the expected net profits outlined in the feasibility study report. Future competition in the PCB market may further intensify, and if the company fails to adjust its strategies in a timely manner, there is a risk that the project may not achieve expected benefits.