en.Wedoany.com Reported - China's Tongfei Shares plans to raise no more than 1.140 billion yuan through a private placement, with funds to be used for the Southern Headquarters and Industrial Cooling Equipment and Components Project, the Liquid Cooling Temperature Control Project, and to supplement working capital. Specifically, 600 million yuan and 300 million yuan will be invested in the two physical projects respectively, with 240 million yuan allocated to supplement working capital.
Tongfei Shares is a comprehensive service provider of overall solutions in the industrial temperature control field, with products covering diverse downstream markets such as CNC equipment, power electronics, energy storage, semiconductors, data centers, and hydrogen energy.
The company's revenue has been growing steadily in recent years, reaching 1.845 billion yuan in 2023, increasing to 2.160 billion yuan in 2024, and further rising to 2.867 billion yuan in 2025, with a cumulative increase of approximately 55.41% over the three years. In terms of net profit attributable to the parent company, it was 183 million yuan in 2023, decreased to 153 million yuan in 2024, and rebounded to 253 million yuan in 2025. Net profit attributable to the parent company after deducting non-recurring gains and losses was 170 million yuan in 2023, 146 million yuan in 2024, and 248 million yuan in 2025, showing a trend of first declining and then rising. The comprehensive gross margin has been continuously declining, at 26.33% in 2023, dropping to 22.06% in 2024, and 22.31% in 2025, a cumulative decrease of about 4 percentage points compared to 2023. The sponsor letter attributes this to intensified competition in the energy storage market, which has put pressure on product prices. Net cash flow from operating activities has improved significantly, from 31 million yuan in 2023 to 111 million yuan in 2024, and further to 189 million yuan in 2025, indicating an enhancement in the company's operational cash collection capability.
According to the sponsor letter, after the projects funded by this placement reach full production, they are expected to generate a total of approximately 1.8 billion yuan in additional annual revenue. Based on the 2025 revenue base, the capacity expansion rate is estimated at about 62.77%, while also adding approximately 47 million yuan in annual depreciation and amortization. The projected gross margin for both projects is 20%, lower than the company's current overall gross margin, and the combined projected net profit is approximately 130 million yuan. The realization of benefits faces multiple variables such as industrial policies, market demand, and competitive dynamics.
As of the signing date of the sponsor letter, the land for the fundraising projects has not yet been obtained through the bidding, auction, or listing process. Only an investment agreement has been signed with the local government, and there is uncertainty regarding the progress of land acquisition, which may affect the project construction schedule.
