Sineng Electric plans share issuance to boost production capacity

Sineng Electric recently approved a private placement of shares, targeting up to 35 specific investors, including controlling shareholder Wu Qiang, who will subscribe for 50 million yuan. The total fundraising amount is not more than 164.86 million yuan, with proceeds allocated to new 25GW string photovoltaic inverter and 15GW energy storage converter production bases, and supplementary working capital. The pricing base date is the first day of the issuance period, with a price not lower than 80% of the average trading price of the company's shares in the 20 trading days prior to the pricing base date.

The capital raised will support the construction of new production facilities in Wuxi, Jiangsu, to expand output of critical components for renewable energy systems. The company's financial reports show increased revenue in 2024 and improved gross profit margins. The private placement is also expected to optimize the company's capital structure and reduce financial risk, as the current free cash flow can only sustain operations for 4.37 months.

The board and shareholders have approved the offering and committed to a lock-up period, with Wu Qiang and related parties subject to an 18-month lock-up. This initiative aligns with Sineng Electric's strategy to enhance its competitiveness in the rapidly growing photovoltaic and energy storage sectors, ensuring it can meet rising market demand and maintain its technological leadership.