Xiangtan Electric expands project sites, optimizes cash flow

Xiangtan Electric Manufacturing Company Limited (SSE:600416) announced a new implementation location for its fundraising investment projects. The company will now use a facility at No. 4 Chayuan Road, Shuangma Street, Yutang District, Xiangtan City, Hunan Province, for two key projects: the "Serialization Research and Industrialization Project of Aeronautical Electrical Systems" and the "Magnetic Levitation Bearing High-Speed Motor System Research and Development and Industrialization Project." This decision, approved by the Ninth Board of Directors at its eleventh meeting on December 15, 2025, aims to improve project specialization, intelligence, and high-end construction, enhance the efficiency of fundraising capital use, and optimize resource allocation.

The total fundraising amount, after deducting issuance expenses, is RMB1,979,294,567.97. The "Serialization Research and Industrialization Project of Aeronautical Electrical Systems" is allocated RMB94,929.46 million, and the "Magnetic Levitation Bearing High-Speed Motor System Research and Development and Industrialization Project" is allocated RMB52,000.00 million. The company also approved launching a non-recourse accounts receivable factoring business with a maximum amount of RMB1 billion, valid for 12 months, to optimize capital management and improve cash flow.

Guotai Haitong Securities, acting as the sponsor institution, confirmed that the increase in implementation locations aligns with regulatory requirements and does not alter the investment direction or use of the raised funds, nor does it harm shareholder interests. The board believes these measures will accelerate project industrialization and ensure effective management.