Torrance Precision Manufacturing (Jiangsu) Co., Ltd.
Special Announcement on Investment Risks for Initial Public Offering of Shares on the ChiNext Market
Sponsor (Lead Underwriter): China International Capital Corporation Limited
Torrance Precision Manufacturing (Jiangsu) Co., Ltd. (hereinafter referred to as "Torrance," "the Issuer," or "the Company") has received approval from the Listing Committee of the Shenzhen Stock Exchange (hereinafter referred to as "SZSE") for its initial public offering of shares (hereinafter referred to as "this Offering") on the ChiNext market, and has obtained registration from the China Securities Regulatory Commission (hereinafter referred to as "CSRC") (CSRC License [2026] No. 1054).
The sponsor (lead underwriter) for this Offering is China International Capital Corporation Limited (hereinafter referred to as "CICC," "the Sponsor," or "the Sponsor (Lead Underwriter)").
The number of shares to be offered in this Offering is 46,368,423 shares, representing 25.00% of the total share capital after the issuance. All shares are being offered to the public, and existing shareholders will not be selling any shares in this public offering. The shares offered in this Offering are intended to be listed on the ChiNext market of the SZSE.
The offering price of RMB 22.60 per share corresponds to a diluted P/E ratio of 44.82 times based on the issuer's net profit attributable to parent company shareholders after deducting non-recurring items for 2025. This is higher than the average static P/E ratio of 43.51 times for the same industry in the past month as published by the China Securities Index Co., Ltd., and lower than the average static P/E ratio of 48.26 times (excluding extreme values) for the same industry's listed companies in 2025 based on net profit attributable to parent company shareholders after deducting non-recurring items. There is a risk that the issuer's stock price may decline, leading to losses for investors. The Issuer and the Sponsor (Lead Underwriter) remind investors to pay attention to investment risks, prudently assess the reasonableness of the offering price, and make investment decisions rationally.
This Offering is subject to the "Administrative Measures for Securities Issuance and Underwriting" (CSRC Order No. 228) (hereinafter referred to as the "Administrative Measures"), the "Administrative Measures for the Registration of Initial Public Offerings of Securities" (CSRC Order No. 205), the "Shenzhen Stock Exchange Implementation Rules for Securities Issuance and Underwriting for Initial Public Offerings" (SZSE [2026] No. 552) (hereinafter referred to as the "Implementation Rules"), the "Shenzhen Market Implementation Rules for Online Issuance of Securities for Initial Public Offerings" (SZSE [2018] No. 279) (hereinafter referred to as the "Online Issuance Implementation Rules"), and the "Shenzhen Market Implementation Rules for Offline Issuance of Securities for Initial Public Offerings (2025 Revision)" (SZSE [2025] No. 224) (hereinafter referred to as the "Offline Issuance Implementation Rules"), the "Shenzhen Stock Exchange Implementation Measures for Investor Suitability Management for the ChiNext Market (2020 Revision)" (SZSE [2020] No. 343) (hereinafter referred to as the "Investor Suitability Management Measures"), the "Rules for Securities Underwriting for Initial Public Offerings" (CAS [2023] No. 18) issued by the Securities Association of China (hereinafter referred to as the "SAC"), the "Management Rules for Offline Investors in Initial Public Offerings of Securities" (CAS [2025] No. 57) (hereinafter referred to as the "Offline Investor Management Rules"), and the "Guidelines for Classification and Management of Offline Investors in Initial Public Offerings of Securities" (CAS [2024] No. 277) (hereinafter referred to as the "Guidelines for Classification and Management of Offline Investors in Initial Public Offerings"), investors should pay attention to changes in relevant regulations.
The Issuer and the Sponsor (Lead Underwriter) would like to draw investors' attention to the following: