Shengyi Electronics Responds to Private Placement Inquiry: 2.53 Billion Yuan Fundraising to Invest in AI Computing Power PCB Project

Shengyi Electronics Co., Ltd. (hereinafter referred to as “Shengyi Electronics”) recently responded to the Shanghai Stock Exchange’s inquiry letter regarding its application documents for issuing shares to specific targets in 2025, providing detailed explanations on core issues such as fundraising scale, effectiveness assessment, and operating conditions. The company plans to raise no more than 2.5295 billion yuan, mainly directed towards the construction of an AI computing HDI production base, smart manufacturing high-layer circuit boards, and supplementing working capital.

Reasonableness of Fundraising Scale Demonstrated, Funding Gap Reaches 4.78 Billion Yuan

According to the response, Shengyi Electronics has adjusted the total amount of fundraising for this private placement from the original 2.6 billion yuan to 2.5295 billion yuan. After assessment, the company expects an overall funding gap of approximately 4.783 billion yuan over the next three years (2026-2028), primarily arising from the funding needs of reviewed investment projects of 5.664 billion yuan, expected cash dividends of 2.233 billion yuan over the next three years, and interest repayments on interest-bearing liabilities of 287 million yuan, among others. As of the end of September 2025, the company has 681 million yuan in available funds, and the expected net cash flow from operating activities over the next three years is 3.670 billion yuan, indicating a significant funding gap.

In terms of debt structure, as of the end of September 2025, the company’s interest-bearing liabilities reached 2.394 billion yuan, with a debt-to-asset ratio of 54.02%, higher than the industry average levels of Huadian Co., Ltd. (46.78%) and Shenzhen South Circuit (43.65%) (42.76%). If this fundraising is resolved through bank loans, the debt-to-asset ratio will rise to 62.48%, further exacerbating financial risk. The financing ratio for this fundraising is 3.33%, lower than Shenghong Technology’s 4.73% for its 2024 private placement, demonstrating reasonableness.

Two Major Fundraising Projects Focus on AI Computing PCB, Investment Structure Clear

The AI Computing HDI Production Base Construction Project has a total investment of 2.032 billion yuan, with 1 billion yuan planned to be raised, mainly directed towards land acquisition (46.85 million yuan), factory construction (526 million yuan), and equipment procurement (1.326 billion yuan). Among these, equipment investment accounts for 65.27%, including 686 sets of equipment such as inner layer graphic transfer equipment (325 million yuan) and plating equipment (213 million yuan). Once the project reaches full production capacity, it will generate an annual capacity of 167,200 square meters of high-end HDI boards, with an expected product unit price of 13,253 yuan/square meter and a gross profit margin of 26.95%.

The Smart Manufacturing High-Multilayer Circuit Board Project has a total investment of 1.937 billion yuan, with 1.1 billion yuan planned to be raised, focusing on equipment procurement (1.363 billion yuan), including drilling equipment (262 million yuan), automation equipment (91 million yuan), and 8,794 sets of equipment. Upon reaching full capacity, it will generate an annual capacity of 700,000 square meters of high-multilayer boards, with an average layer count of 16 layers, and a maximum of 30 layers, with an expected unit price of 2,854 yuan/square meter and a gross profit margin of 22.49%.

Compared to peers, the unit price for the main infrastructure construction of the AI computing HDI project is 5,600 yuan/square meter, on par with similar projects from Founder Technology; the unit investment for capacity equipment per square meter is 7,932.93 yuan, falling between Shenghong Technology (8,271.31 yuan) and the company’s similar projects (4,456.51 yuan). The construction unit price for the high-multilayer project is 5,800 yuan/square meter, slightly higher than Chongda Technology (4,000 yuan/square meter), mainly due to higher product layer counts and cleanliness requirements.

Performance Fluctuations Align with Industry Trends, AI-Driven Future Growth

During the reporting period (2022-September 2025), Shengyi Electronics’ operating revenue increased from 3.535 billion yuan to 6.829 billion yuan, while the net profit attributable to the parent company, after deducting non-recurring gains and losses, fluctuated from 273 million yuan to 1.112 billion yuan, with a comprehensive gross profit margin increasing from 23.85% to 31.98%. The performance fluctuations were primarily influenced by the industry cycle: in 2023, due to a decline in demand for communication networks, the company’s revenue dropped by 7.95% to 3.273 billion yuan, resulting in a net loss of 43.66 million yuan; from 2024 onward, benefiting from a surge in AI server demand, revenue rebounded to 4.687 billion yuan, with a net profit of 327 million yuan; in the first nine months of 2025, the company continued to see high growth, with revenue increasing by 114.79% year-on-year.

The proportion of the company’s export revenue increased from 41.13% in 2022 to 63.34% in the first nine months of 2025, mainly due to a surge in sales of AI server PCBs to major overseas clients. As of the end of February 2026, the company had orders totaling 3.495 billion yuan, with the preliminary revenue report for 2025 indicating revenue of 9.494 billion yuan (up 102.57% year-on-year) and net profit of 1.473 billion yuan (up 343.76% year-on-year), maintaining high industry prosperity.

Accounts Receivable and Inventory Quality Good, Provisions for Impairment Adequate

As of the end of September 2025, the company’s accounts receivable balance was 3.372 billion yuan, an increase of 234.29% compared to the end of 2022, matching the revenue growth. The proportion of accounts receivable aged within one year was 99.87%, with a post-period collection rate of 99.71%, mainly from domestic and foreign leading enterprises with good credit conditions. The provision for bad debts was set at 0.26%, although lower than the industry average, it is deemed adequate based on the quality and collection situation of clients.

The inventory balance was 1.738 billion yuan, up 133.68% compared to the end of 2022, primarily due to rising raw material prices and an increase in the proportion of high-end products. The proportion of inventory aged within one year was 96.32%, with a post-period turnover rate for raw materials of 90.08%, finished goods order coverage rate of 95.15%, and post-period sales rate of 90.25%. The provision for inventory impairment was set at 5.56%, within a reasonable range for the industry.

Previous Fundraising Project Adjustments Completed, Financial Investments Proportion Low

The company’s previous fundraising for the Dongcheng Factory (Phase IV) project did not meet expected benefits due to a decline in communication market demand in 2023-2024, but from January to September 2025, as AI server products ramped up, it achieved current benefits and has now been completed. Phase I of the intelligent computing center project has reached the predetermined usable status, with 133 million yuan of remaining fundraising planned for equipment final payments, and the timing of capitalization complies with accounting standards.

As of the end of September 2025, the company’s total financial investments amounted to 46.2275 million yuan, accounting for 0.90% of net assets, mainly for investments in industry funds. Financial investments made and planned for investment within six months prior to the board resolution for this issuance totaled 70.5 million yuan, resulting in a corresponding reduction in the fundraising scale.

Huaxing Certified Public Accountants, as the reporting auditor, after verifying the above matters, concluded that the investment composition of Shengyi Electronics’ fundraising projects is reasonable, the scale of financing is necessary, the effectiveness assessment is cautious, the impact of additional depreciation on performance is controllable, and the relevant risk warnings are adequate.

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