Sinoma science & technology plans A-share issuance for strategic growth

Sinoma Science & Technology Co., Ltd. plans to issue A-shares to specific investors, including China United Investment Co., a wholly-owned subsidiary of China National Building Materials Group, to raise funds. The total investment for the proposed projects is expected to be CNY 490,127.92, with an estimated CNY 448,114.92 to be raised from the issuance.

The funds will be allocated to strategic initiatives, including a CNY 180,624.00 project for a 35 million square meter low-dielectric constant fiber cloth production line and a CNY 175,089.00 project for a 24 million square meter ultra-low loss low-dielectric constant fiber cloth production line. Additionally, CNY 82,014.92 will be used to repay state appropriations, and CNY 52,400.00 will supplement working capital.

These investments align with Sinoma Science & Technology's strategy to expand its production capacity for high-performance special fibers, leveraging the growing demand driven by the AI industry. The company, controlled by China National Building Materials Group, expects this move to enhance its market competitiveness and sustainable development. The issuance, pending regulatory approvals, is structured to maintain the existing ownership structure, with China National Building Materials Co., Ltd. remaining the controlling shareholder.

As of September 30, 2025, Sinoma Science & Technology’s total assets were CNY 64,727,145.80 and its total liabilities were CNY 33,127,660.42. For the first nine months of 2025, the company reported a net profit of CNY 1,124,312,496.15. The proposed projects are projected to have a robust internal rate of return, with an estimated after-tax internal rate of return of 17.74% for the 35 million square meter project and 23.53% for the 24 million square meter project.