Zhejiang Jinggong Tech shifts funds to new smart manufacturing base

Zhejiang Jinggong Science & Technology announced a significant shift in its capital allocation, re-designating 250 million yuan of raised funds from the "Carbon Fiber and Composite Equipment Smart Manufacturing Construction Project" to establish a new "Jinggong Composite Smart Manufacturing Base Project." This new project, to be implemented by wholly-owned subsidiary Jinggong (Wuhan) Composite Materials Co., Ltd., has an estimated total investment of 425.85 million yuan. The company will inject 250 million yuan of the raised funds into Jinggong (Wuhan) Composite Materials Co., Ltd., increasing its registered capital from 50 million yuan to 300 million yuan.

This strategic redirection supports Jinggong Technology's transition from an equipment manufacturer to an "equipment + materials" comprehensive solution provider, aiming to enhance its core competitiveness in the carbon fiber industry. The company also approved a construction contract with Zhejiang Jinggong Construction Engineering Co., Ltd., a related party, for the new base, with a preliminary total price of 65 million yuan. This transaction, along with the capital reallocation, awaits shareholder approval.

Additionally, Zhejiang Jinggong Science & Technology will continue to use up to 300 million yuan of idle raised funds for cash management, investing in low-risk, highly liquid products for up to 12 months, aiming to maximize returns for shareholders without impacting project progress.