Zhejiang Puliide Electrical Appliance Co., Ltd.
Announcement on Capital Increase to Wholly-Owned Subsidiary and Investment in New Production Base in Thailand
The Company and the Board of Directors guarantee the content of this information disclosure is true, accurate, and complete, and that there are no false representations, misleading statements, or material omissions.
I. Overview of External Investment
Zhejiang Puliide Electrical Appliance Co., Ltd. (hereinafter referred to as the "Company") and its wholly-owned subsidiaries Zhejiang Newmate Technology Co., Ltd. and Jinhua Hengwu Industrial Co., Ltd. currently hold 100% of the equity in Puliide Electrical Appliance (Thailand) Co., Ltd. (hereinafter referred to as the "Thai Subsidiary"), with shareholding ratios of 98%, 1%, and 1% respectively. The aforementioned entities plan to increase capital to the Thai Subsidiary by no more than RMB 423 million with their own funds and raised funds, in proportion to their existing shareholding. The Thai Subsidiary will act as the implementing entity to invest in and construct a new production base in Thailand (hereinafter referred to as the "Current Investment"). This investment project plans to build new production facilities and supporting infrastructure in Thailand, and to purchase multiple sets of automated and digitalized production lines and IT supporting equipment. This will promote the deep integration of production line automation upgrades and digitalized control. Upon reaching full production, it will form an annual production capacity of 7 million units of electric tools, which will help shorten product delivery cycles and further improve processing consistency and quality reliability. The enhancement of production and delivery capabilities will lay a solid manufacturing foundation for the Company to undertake customer orders and expand market space, contributing to a steady improvement in the Company's market competitiveness.
The Thai Subsidiary was established by the Company in November 2018. After years of dedicated operation, it has established a comprehensive management system for quality, occupational health and safety, and environment, and has passed third-party authoritative certifications, forming a full-chain service capability from manufacturing to sales management. In recent years, with the continuous increase in global demand for electric tools and the expansion of the Thai Subsidiary's business scale, the Thai Subsidiary's existing production capacity will reach full capacity by the end of 2025. This investment is an expansion based on the production and operation situation of the Thai Subsidiary in the early stage. It aims to leverage the accumulated local operational experience and supply chain foundation to further release overseas production capacity, alleviate production bottlenecks, optimize global production layout, and provide sufficient manufacturing assurance for undertaking continuously growing overseas orders.
On July 10, 2026, the Company held the 20th meeting of the Second Board of Directors, which reviewed and approved the "Proposal on Capital Increase to Wholly-Owned Subsidiary and Investment in New Production Base in Thailand." In accordance with the "Rules Governing the Listing of Stocks on the ChiNext Market of the Shenzhen Stock Exchange," the "Articles of Association," and other relevant regulations, this investment project does not require submission to the Company's shareholders' meeting for review. This investment matter does not constitute a related-party transaction, nor does it constitute a major asset restructuring as defined by the "Measures for the Administration of Major Asset Restructuring of Listed Companies."
II. Project Basic Information