On February 17, ZONCN Technology (603275) issued an announcement stating that the Company convened the 11th Meeting of the 2nd Board of Directors and the 7th Meeting of the 2nd Board of Supervisors on February 17, 2025. At the meetings, the Company reviewed and adopted the Proposal on Investing in New Projects with Part of the Excess Raised Funds, and approved the investment of RMB 72,568,600 from part of the excess raised funds in the construction of new projects.

The project is the construction of a high-voltage inverter production base and auxiliary buildings, with a total investment of 72.57 million yuan. Among the total investment, construction works account for 32.45 million yuan, equipment procurement and installation for 23.52 million yuan, basic reserve funds for 2.80 million yuan, and bottom-line working capital for 13.79 million yuan.

The project includes demolishing some old factory buildings on the company’s owned land at No. 1188 Xinyan Road, building new high-voltage inverter production workshops and auxiliary rooms (guard house, garbage room, etc.), and introducing a full set of advanced production equipment, testing equipment and auxiliary equipment. It will form an additional annual production capacity of 1,200 units of high-voltage inverter products. The total planned construction area of the project is 9,272.37 square meters, and the construction period is 3 years (subject to actual implementation).

ZONCN Technology’s current main business focuses on the low-voltage inverter sector. Although the company has launched high-voltage products and achieved sales, the business scale is small and production capacity is constrained. Through the construction of this high-voltage inverter project, the company will further promote the formation of a product system covering all voltage levels and realize the full business expansion from the low-voltage market to the high-voltage market.

As core equipment for industrial energy-saving renovation, high-voltage inverters are widely used in high-energy-consuming industries such as metallurgy, electric power and mining. They feature high technical thresholds, strong customer stickiness and significant product added value. Through this project, the company will further promote mutual empowerment between high-voltage business and existing low-voltage business. This can not only meet customers’ diversified demands, but also enhance order value and strengthen market competitiveness through the “product portfolio sales” model, bringing new business growth points for the company.

ZONCN Technology stated that the investment in the new project with part of the excess raised funds is in line with national industrial policies and the company’s development needs, and is closely related to the company’s existing main business. The implementation of the project will help the company further expand production scale, improve profitability, enhance core competitiveness and promote sustainable development.

In the first three quarters of 2024, ZONCN Technology achieved operating income of 494 million yuan and net profit attributable to the parent company of 161 million yuan.