Ningbo Huaxiang revises A-share issuance for strategic growth projects

Ningbo Huaxiang Electronic Co., Ltd. (SZSE:002048) announced a revised draft prospectus for its non-public issuance of A-shares in 2025, aiming to raise up to RMB 292,073.18 million. The proceeds are designated for strategic projects, including the Wuhu Automotive Parts Intelligent Manufacturing Project, Chongqing Automotive Interior Parts Production Base Project, R&D Center Project, Digital Transformation and Upgrade Project, and supplementary working capital. These investments are intended to expand production capacity for battery pack housings, vehicle body structural parts, and interior parts, and enhance R&D capabilities in intelligent chassis and humanoid robots.

The company's recent filings, including an audit report from Tianjian Certified Public Accountants, indicate a detailed financial overview of the proposed offering. This issuance follows a recent acquisition of 47.50% equity in Ningbo Schlemmer Automotive Parts Co., Ltd. and other overseas Schlemmer entities for RMB 14.73 billion, with a profit commitment from Singapore Fengmei for 2024-2026. The funds will address a projected working capital gap of RMB 384,891.99 million by 2027. The issuance is still subject to approval from the Shenzhen Stock Exchange and the China Securities Regulatory Commission.